A deceased student’s notional income may include 40% future prospects when calculating loss of dependency.

On 25 August 2018, 17-year-old Sai Bharath Chandan, a II PUC student, was killed when a tipper lorry collided with the motorcycle he was riding.

His claimants—the appellants—challenged the Tribunal’s award of ₹9,34,000 with 6% annual interest, seeking enhanced compensation.

The Tribunal had assessed his notional monthly income at ₹8,000

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988

The appeal was considered under Section 173(1) of the Motor Vehicles Act, 1988.

In assessing compensation, the Court used a monthly notional income of ₹12,500 for the year 2018, added 40% for future prospects, deducted 50% for the deceased’s personal expenses because he was unmarried, and applied a multiplier of 18 based on his age.

It also assessed compensation for loss of consortium at ₹44,000 for each of the three claimants and increased the amounts for loss of estate and funeral and related expenses by ₹1,500 under each head.

The judgment cites no statute-specific compensation formula or precedent for these figures.

The Court found that the Tribunal’s monthly income assessment of ₹8,000 was inadequate for the year of the accident and substituted ₹12,500.

Applying the stated future-prospects addition, personal-expense deduction and multiplier produced loss of dependency of ₹18,90,000.

It then increased compensation under the conventional heads, bringing the total award to ₹20,55,000.

The enhanced sum was ordered to carry interest at 6% per annum from the date of the appeal until realisation.

Respondent No. 2 was directed to deposit the enhanced amount within six weeks of receiving the certified judgment, and the Tribunal was directed to release the entire amount in favour of the claimants.