Dependants of an 80-year-old deceased may receive loss-of-dependency compensation based on notional income.

The claimants, the deceased Arayi @ Arayee’s two daughters and son, sought compensation under Section 166 of the Motor Vehicles Act for her death in a road accident on 7 April 2022.

The Tribunal found the van driver negligent and awarded a total of ₹83,000 under various heads, but no amount for loss of dependency.

The claimants appealed under Section 173 of the Act, seeking enhancement, including compensation for loss of dependency.

Whether the claimants were entitled to compensation for loss of dependency, given their claim that the deceased contributed to the family financially and otherwise.

Whether the Tribunal’s total award of ₹83,000 required enhancement.

The claim was brought under Section 166 of the Motor Vehicles Act, and the appeal was filed under Section 173.

In assessing loss of dependency, the Court adopted a notional monthly income and applied a multiplier, taking account of the deceased’s age, avocation, and the number of dependants.

No precedent was cited.

The Court accepted that the deceased, aged 80, had been engaged in agricultural work and milk vending, but did not accept the claimed income of ₹30,000 per month.

Considering the accident date, her avocation, and the number of dependants, it fixed her notional monthly income at ₹5,000 and applied a multiplier of 5, awarding ₹3,00,000 for loss of dependency.

It found the Tribunal’s awards under the other heads—elderly guidance and mental agony, loss of estate, funeral expenses, and transportation—proper and reasonable.

It directed the insurer to deposit the enhanced compensation, less any amount already deposited, within six weeks; the Tribunal’s apportionment and disbursement arrangements were to remain in force.

No costs were awarded.