AP High Court Enhances Motor Accident Compensation To ₹10 Lakh Despite No Appeal By Claimants, Cites Future Prospects & Deceased's Age

The Andhra Pradesh High Court has enhanced the compensation payable to the family of a deceased motor accident victim from Rs. 7.28 lakh to Rs. 10.06 lakh, in view of the deceased's future prospects and age even though the claimants had not filed an appeal. [2026 LiveLaw (AP) 111]

The Court observed that although the Motor Accident Claims Tribunal had notionally fixed the deceased's monthly income at Rs. 5,000 despite evidence regarding his employment, the age of the deceased warranted addition towards future prospects.

Justice A. Hari Haranadha Sarma dismissed an appeal filed by APSRTC challenging the award passed by the Motor Accident Claims Tribunal, while enhancing the compensation awarded to the claimants. The court observed:

“Exs.A4 and A5 are indicating the employment of the deceased. However, the learned MACT has notionally taken the income at Rs.5,000/-, though the claimants claimed it at Rs.8,000/-. The claimants are not in appeal, but in view of the age of the deceased, addition of future prospects is permissible to the tune of at least 30%. Then, the income of the deceased will rise to Rs.6, 500 per month and Rs.78,000/- per annum.
The compensation awarded under the heads of funeral expenditure requires revisit. No compensation was awarded under the heads of loss of consortium and loss of estate. Therefore, the claimants are entitled for compensation under the conventional heads i.e., Rs.15,000/- towards funeral expenditure and Rs.15,000/- towards loss of estate. Claimant No.1, being the father of the deceased, alone is entitled for filial consortium i.e., Rs.40,000/-.”

The appeal arose from an award passed in a claim petition filed by the father and sisters of a 27-year-old man who died in a road accident involving an APSRTC bus. The deceased was employed as a Credit Officer and was stated to be earning around Rs. 8,000 per month.

The Motor Accident Claims Tribunal had earlier awarded compensation of Rs. 7.28 lakh after assessing the deceased's annual income at Rs. 60,000 and taking his monthly income at Rs. 5,000. 

APSRTC challenged the award contending that the deceased himself was negligent, that his income had not been established, and that the father and sisters were not dependent upon him.

The High Court, however, upheld the finding that the accident occurred due to the rash and negligent driving of the APSRTC bus driver and found no material to accept the plea of contributory negligence.

Relying on Supreme Court decisions relating to future prospects and just compensation, the Court held that an appellate court is empowered to enhance compensation even in the absence of an appeal or cross-objections by the claimants.

The Court also rejected APSRTC's objection to the entitlement of the claimants, observing that the legal heir status of the father and sisters to claim compensation, particularly when the sisters were minors, could not be doubted.

Consequently, the compensation was enhanced from Rs. 7.28 lakh to Rs. 10.06 lakh with interest at 6% per annum from the date of the claim petition till realization, while APSRTC's appeal was dismissed.

Case Title: The A.P.S.R.T.C., represented by its Managing Director v. Vadde Durganna & Others

Case No.: M.A.C.M.A. No. 1424 of 2014

Counsel for the Appellant: Aravala Rama Rao (Standing Counsel for APSRTC)

Counsel for the Respondents: B.R.S. Kalyan Reddy

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Citation:2026 LiveLaw (AP) 111