- 1 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE UMESH M ADIGA MISCELLANEOUS FIRST APPEAL NO. 2739/2021 (MV-D) BETWEEN: M/S. ACKO GENERAL INSURANCE CO. LTD. NO.36/5, HUSTLE HUB, ONE EAST SOMASANDRAPALYA, 27TH MAIN ROAD SECTOR 2, HSR LAYOUT BENGALURU-560 102 REPRESENTED BY MANAGER …APPELLANT (BY SRI. RAVI SHANKAR S SAMPRATHI, ADVOCATE) AND: 1. SRI. RAVI C S/O MADHAVAN NAIR AGED ABOUT 53 YEARS 2. SMT SUNITHA W/O RAVI C MAJOR IN AGE BOTH ARE RESIDING AT KOOMULLUM KANDIYIL KUTTERIMMEL, MANASSERY POST MUKKAM VIA, KOZHIKODE KERALA-6736021 3. WICKEDRIDE ADVENTURE SERVICES PVT LTD NO.1705, 2ND FLOOR, EAST END A MAIN Digitally signed by HEMALATHA A Location: HIGH COURTOF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 JAYANAGARA, 9TH BLOCK BENGALURU-560069 REPRESENTED BY ITS MANAGER …RESPONDENTS (V/O DTD: 06.11.2025 NOTICE TO R3 IS DISPENSED; R1 & R2 SERVED AND UNREPRESENTED) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST THE JUDGMENT AND AWARD DATED 03.04.2021 PASSED IN MVC NO. 5058/2019 ON THE FILE OF THE V ADDITIONAL SMALL CAUSES JUDGE AND XXIV ACMM, MEMBER, MACT, BENGALURU AWARDING COMPENSATION OF RS.31,34,000/- WITH INTEREST AT 9 PERCENT P.A. FROM THE DATE OF PETITION TILL ITS REALIZATION. THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE UMESH M ADIGA ORAL JUDGMENT 1. This appeal is filed by the insurer, being aggrieved by the judgment and award dated 03.04.2021, passed by the Motor Accidents Claims Tribunal and V Additional Judge, SCCH-20, Mayo Hall Unit, Bengaluru, in MVC No. 5058/2019, seeking enhancement of compensation. 2. For the sake of convenience, the parties are referred to as per their ranking before the Tribunal. - 3 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 3. Inspite of service of notice, there is no representation on behalf of respondent Nos. 1 and 2. 4. Heard arguments of learned advocate for the appellant and perused the material placed before the Court. 5. The brief facts of the case are that on 18.07.2019 at about 1.20 a.m., deceased Sarath C was traveling as a pillion rider on a scooter bearing registration No.KA- 03/AG-8684 on Old Madras road. The rider of the said two wheeler was riding the vehicle in a rash and negligent manner and thereby, he lost control over the vehicle and fell on the road. As a result, he sustained serious head injuries and while undergoing treatment, he succumbed to the injuries. The claimants being his legal representatives and dependants have filed the petition claiming compensation. 6. The further contention of the claimant is that the deceased was aged about 25 years and he was earning Rs.25,000/- per month and contributing his earnings to - 4 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 the maintenance of the family and they lost earning member of the family. With these reasons they prayed to award compensation of Rs.50,00,000/- along with interest. 7. Respondent / insurer filed objections denying the contents of the claim petition. It is also contended that its liability is restricted to the terms and conditions of the policy of insurance. With these reasons prayed to dismiss the petition. 8. The Tribunal framed necessary issues and recorded the evidence. After hearing both parties, the Tribunal awarded following amounts of compensation. Particulars Amount in (Rs.) Loss of dependency 30,24,000 Funeral expenses 15,000 Loss of estate 15,000 Loss of consortium 80,000 Total 31,34,000 - 5 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 9. The fact of accident and death of Sarath in the accident are not seriously disputed. The main contention of the learned counsel for the appellant – insurer is that the Tribunal has erroneously added 50% of the income towards future prospects. Admittedly, deceased was not having a permanent employment and there is no evidence in this regard and even there is no discussion about considering 50% of income towards future prospects. Therefore, adding 50% of income towards future prospects instead of 40% is erroneous. 10. He further contends that the deceased was unmarried and had left behind only his parents. Therefore, the Tribunal ought to have deducted 50% of his income towards personal expenses, but the Tribunal erroneously deducted 1/3 of his income towards personal expenses. Therefore, prayed to recalculate the said amount and award just amount of compensation - 6 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 11. On going through the impugned judgment, the contention of the insurer is tenable. Instead of addition of 40% of income towards future prospects as held by NATIONAL INSURANCE COMPANY LTD. vs. PRANAY SETHI AND OTHERS reported in (2017) 16 SCC 680, the Tribunal added 50% of income towards future prospects. The deceased was unmarried and had left behind him only two dependents. Instead of deducting 50% of his income towards personal expenses Tribunal erroneously deducted, 1/3 of his income was deducted towards personal expenses. The said errors requires to be corrected. Accordingly, the claimants are entitled to following amount of compensation. Loss of dependency: Monthly income - 14,000/- Add: 40% towards future prospects - 5,600/- Total - 19,600/- Less: 50% towards personal expenses - 9,800/- Actual income - 9,800/- - 7 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 Multiplier - 18 Loss of dependency 9,800 x 12 x 18 - 21,16,800/- 12. On re-appreciating the materials available on record, the amounts of compensation is reassessed and recalculated as follows: Particulars Amount in (Rs.) Loss of dependency 21,16,800 Funeral expenses 15,000 Loss of estate 15,000 Loss of consortium 80,000 Total 22,26,800 13. Thus, the claimants are entitled to compensation of Rs.22,26,800/- as against Rs.30,24,000/- awarded by the Tribunal. 14. The learned counsel for the appellant-insurer contends that the Tribunal has awarded exorbitant interst @ 9% - 8 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 p.a. instead of 6% p.a. Therefore, submits that the rate of interest may be reduced to 6% p.a. 15. The award of the interest is at the discretion of the Tribunal. Considering the facts and circumstances, it awarded interest @ 9% p.a. This Court is not inclined to interfere with the said finding. Undisputedly, respondents are liable to pay compensation. 16. In the result, I proceed to pass the following: ORDER a) The appeal is allowed in part. b) The judgment and award dated 3.04.2021 passed by the Motor Accident Claims Tribunal & V Addl. Judge, SCCH-20, Mayo Hall Unit, Bengaluru, in MVC No.5058/2019 is modified; c) The claimants are entitled to compensation of Rs.22,26,800/- as against Rs.31,34,000/- awarded by the Tribunal - 9 - HC-KAR NC: 2025:KHC:44851 MFA No. 2739 of 2021 d) The respondent - insurance company shall deposit the said amount along with interest within a period of six weeks from the date of award. e) Remaining portion of the judgment passed by the Tribunal is not disturbed. f) Send a copy of this judgment to the trial Court. g) Amount in deposit, if any, shall be transmitted to the Tribunal for disbursement. h) Draw award accordingly. Sd/- (UMESH M ADIGA) JUDGE CM List No.: 1 Sl No.: 3