Documented business earnings justify assessing income above the notional rate in compensation claims.

The claimants appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement of compensation for the death of P. Gopal Shetty in a road accident on 23 October 2023.

The Tribunal had awarded total compensation of ₹16,30,300, including ₹14,25,600 for loss of dependency, with interest at 6% per annum.

The deceased was aged 51 and was stated to have earned income from a rice business.

1. Whether the Tribunal’s assessment of compensation for loss of dependency required enhancement in light of the deceased’s age and income.

2. Whether the compensation awarded for consortium to the deceased’s children required enhancement.

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988, which provides for an appeal against an award of a Motor Accidents Claims Tribunal.

In assessing compensation, the Court applied the multiplier method, added future prospects to the deceased’s income, and deducted a portion for personal expenses.

It also applied a 20% escalation to the consortium amount.

The Court accepted the Tribunal’s use of multiplier 9, given the deceased’s age of 51, but found that his income should be assessed at ₹17,000 per month—slightly above the 2023 notional income of ₹16,250—having regard to the evidence of his rice business and bank passbook.

It added 10% for future prospects, deducted one-fourth for personal expenses, and calculated loss of dependency at ₹15,14,700.

The Court found that the Tribunal had not applied the 20% escalation to the consortium awarded to the three children, and increased their combined consortium award to ₹1,45,200; the wife’s consortium award, and the awards for loss of estate and funeral expenses, were maintained.

The claimants were awarded an additional ₹1,14,300 with interest at 6% per annum from the date of the petition until realization.

The insurer was directed to deposit the enhanced amount with interest before the Tribunal within six weeks, and the claimants were entitled to shares in the ratio of 70:10:10:10.