A B.E. graduate’s notional income may be assessed at ₹20,000 per month for compensation.

On 12 August 2017, Shankar, aged 22 and a B.E. graduate, died after a car collided with the motorcycle he was riding

His parents, Jayanthi and Kumar, sought compensation before the Motor Accidents Claims Tribunal.

The Tribunal awarded ₹13,30,200, including ₹12,85,200 for loss of earning, and directed the insurer to pay

The parents appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, principally on the ground that the Tribunal had assessed the deceased’s monthly income at only ₹8,500

Whether the Tribunal’s assessment of the deceased’s income at ₹8,500 per month should be revised, having regard to his engineering qualification and the precedent cited by the appellants.

Whether the amounts awarded under the other heads of compensation, including transportation and loss of love and affection, required enhancement.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of a Motor Accidents Claims Tribunal.

In Basanti Devi v. Divisional Manager, New India Assurance Company Limited and others, 2022 (1) TN MAC 148 (SC), the Supreme Court held that, considering a deceased’s qualification as a Bachelor of Engineering in Computer Technology and earning potential, income could be assessed at least at ₹20,000 per month even without supporting documentary evidence.

In assessing compensation here, the Court also applied a 40% addition for future prospects, a multiplier of 18, and a 50% deduction for the deceased bachelor’s personal expenses.

The accident and negligence were undisputed, so the appeal concerned only quantum.

Applying Basanti Devi to the deceased’s B.E. qualification and the 2017 accident, the Court fixed his monthly income at ₹20,000.

It affirmed the Tribunal’s 40% addition for future prospects and multiplier of 18, and deducted half for personal expenses, resulting in ₹30,24,000 for loss of earning.

The Court considered transportation expenses of ₹5,000 inadequate and increased them to ₹10,000; it also awarded ₹88,000 for loss of love and affection to the parents, at ₹44,000 each.

It confirmed the remaining heads.

It directed the insurer to deposit the modified award within eight weeks, subject to payment of any requisite court fee, and permitted the claimants to withdraw their apportioned shares after deducting sums already withdrawn.

No costs were awarded.