The Supreme Court has increased the compensation awarded to the family of a 31-year-old US national who died in a 2007 road accident in Karnal, from ₹1.17 crore to ₹1.60 crore by adding the legally mandated “future prospects” component.
A bench of Justices K. Vinod Chandran and N.V. Anjaria upheld the Punjab & Haryana High Court’s assessment of the deceased’s income at ₹78,300 per month, based on US minimum wage data and verified documents, rejecting objections from the insurer. The Court noted that the High Court erred in omitting the 40% addition for future prospects prescribed by the Constitution Bench in National Insurance Co. v. Pranay Seth, (2017) 16 SCC 680, even for self-employed persons.
Applying Pranay Sethi, the Court added 40% to the established income, revised amounts under conventional heads (loss of estate, consortium, and funeral expenses), and awarded ₹1.60 crore in total, granting an additional ₹42,95,080 with 6% interest. The insurer was directed to deposit the enhanced amount with the Motor Accident Claims Tribunal within four weeks, for release to the widow, daughter, and parents after verification.
