Summary
The Supreme Court revised accident compensation for the death of a 42-year-old self-employed person by applying a 25% future-prospects addition under Pranay Sethi instead of 30%. With the stated income, one-fourth personal-expense deduction, multiplier 14, medical expenses and conventional heads, compensation was fixed at Rs. 27,66,522 with 9% interest from the claim petition. The insurer had eight weeks to deposit the balance; excess already withdrawn under the interim order was protected from recovery.
Issues
- What future-prospects addition and resulting compensation applied to the 42-year-old self-employed deceased.
Held
- Self-employment did not preclude future prospects. Under the Constitution Bench rule applied, a deceased aged 42 attracted 25% addition to established income, replacing the tribunal’s 30% addition. (¶¶ 3, 4)
- On annual income of Rs. 1,81,500, 25% future prospects, one-fourth personal expenses and multiplier 14, dependency was quantified at Rs. 23,82,187. Adding Rs. 3,14,335 medical expenses and Rs. 70,000 conventional heads yielded total Rs. 27,66,522, with 9% annual interest from the claim petition and tribunal apportionment. (¶ 5)
- The insurer was to deposit the balance under the revised calculation within eight weeks for verified disbursement. If claimants had already withdrawn more under the interim order than the revised entitlement, no recovery was to be made. (¶ 6)
Result
Appeal disposed of; compensation revised to Rs. 27,66,522 with 9% annual interest from the claim petition. Balance to be deposited within eight weeks; excess already withdrawn protected against recovery. No costs.