Deceased’s income was assessed at ₹20,000 monthly based on shared family-business earnings.

A 27-year-old bachelor, who worked as a goldsmith, died in a collision between his two-wheeler and a truck on 10 October 2023.

His parents sought compensation. The Tribunal assessed his income at Rs.15,000 and awarded total compensation of Rs.21,81,600. The parents appealed, contending that their deceased son and his elder brother had succeeded to a goldsmith shop and that the evidence supported a higher income. The insurer disputed that the deceased’s alleged monthly earnings of Rs.25,000 had been proved. Liability and all matters other than the quantum of compensation were admitted.

1. Whether the Tribunal’s assessment of the deceased’s income should be increased in light of the evidence concerning the family goldsmith business and the elder brother’s income and salary payments.

2. Whether, on reassessing the deceased’s income, the claimants were entitled to enhanced compensation.

The Court relied on National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for determining compensation, including the addition for future prospects and conventional heads of compensation.

The judgment did not identify any statutory provision as the basis for its decision.

The Court considered that the deceased and his elder brother had succeeded to the goldsmith business started by their father. The elder brother’s income-tax records showed annual income of Rs.5,00,000 and salary payments of approximately Rs.2,40,000 per year. In light of their joint interest in the business and the possibility that the brothers shared its income even if no salary was paid, the Court assessed the deceased’s income at Rs.20,000 per month.

Applying the Pranay Sethi approach, it added 40% for future prospects, deducted one-half for personal expenses, and applied a multiplier of 17. It calculated total compensation at Rs.29,99,000, including consortium, loss of estate and funeral expenses.

The Court increased the total compensation from Rs.21,81,600 to Rs.29,99,000 and awarded the claimants an additional Rs.8,17,400, with interest at 9% from the date of the claim petition until realization.

The insurer was directed to deposit the enhanced amount within ten weeks of receiving the order; it is to be disbursed to the claimants upon verification by NEFT/RTGS.