Madras High Court
Transport, Maritime, and Aviation LawInsurance Law

Courts must reasonably estimate a deceased’s income when evidence is unavailable in motor accident claims.

B. INDIRANI vs A. SIVAKUMAR

Madras High CourtJUDGMENT: October 09, 20262 MIN READSOURCE JUDGMENT
Courts must reasonably estimate a deceased’s income when evidence is unavailable in motor accident claims.. B. INDIRANI vs A. SIVAKUMAR. Madras High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The claimants, the deceased Balasubramanian’s dependants, sought compensation after he died in a collision between his two-wheeler and a lorry on 28 June 2016.

Source reference: para. 2.1–2.3

The Tribunal attributed the accident to the lorry driver and awarded ₹18,43,500.

Source reference: para. 3.1

The claimants appealed under Section 173 of the Motor Vehicles Act, seeking enhancement, principally on the grounds that the deceased’s income had been assessed too low and that compensation for loss of love and affection was inadequate

Source reference: para. 4.1
02

Issues

1. Whether the compensation awarded by the Tribunal required enhancement, including by revising the deceased’s monthly income for the loss-of-dependency calculation

Source reference: paras. 4.1, 6–7.2

2. Whether the amounts awarded under the relevant non-pecuniary heads required revision

Source reference: paras. 4.1, 6, 7.3
03

Law Applied

The appeal was brought under Section 173 of the Motor Vehicles Act

Source reference: para. 5.2

The Court stated that, where evidence does not establish the deceased’s income, the court must determine a reasonable income through guesswork

Source reference: para. 7.2

It applied a 40% addition for future prospects, a one-fourth deduction for personal expenses, and a multiplier of 17 in calculating loss of dependency

Source reference: para. 7.2

The judgment refers generally to repeated Supreme Court guidance on reasonable guesswork but identifies no specific precedent

Source reference: para. 7.2
04

Reasoning

The deceased was about 26 years old and was said to have operated a firewood-selling business, but the claimants had not proved an income exceeding ₹30,000 per month

Source reference: para. 7.1

Finding the Tribunal’s monthly-income assessment of ₹7,500 too low, the Court fixed income at ₹8,000.

Source reference: para. 7.2

After adding 40% for future prospects, deducting one-fourth for personal expenses, and applying a multiplier of 17, it recalculated loss of dependency at ₹17,13,600

Source reference: paras. 3.1, 7.2

It also revised the amounts for consortium and funeral expenses, while confirming medical expenses

Source reference: paras. 7.3, 8.1
05

Holding

The appeal was partly allowed.

The total compensation was enhanced from ₹18,43,500 to ₹19,95,600, with interest at 7.5% per annum from the date of the claim petition until deposit.

Source reference: paras. 9.1–9.4

The Insurance Company was directed to deposit the enhanced compensation with interest within eight weeks; the claimants may withdraw it according to the Tribunal’s apportionment.

Source reference: paras. 9.1–9.4

No costs were awarded

Source reference: paras. 9.1–9.4
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19881

Madras High Court

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B. INDIRANIvsA. SIVAKUMAR

Madras High Court · October 09, 2026

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