Housewife’s Notional Income Reassessed at ₹7,500 with 40% Future Prospects Following Shiv Kumar Precedent

On February 21, 2014, the deceased, Hansaben Dhirubhai (aged 35), was a pillion rider on a motorcycle driven by her husband.

An offending vehicle (Reg. No. GJ-13-W-2757) struck the motorcycle from behind due to rash and negligent driving, resulting in Hansaben’s death.

The claimants (husband and two children) filed M.A.C.P. No. 1 of 2015 before the Motor Accident Claims Tribunal, Surendranagar, which awarded Rs. 6,10,000/- with 9% interest.

Dissatisfied with the quantum of compensation, the claimants preferred this appeal for enhancement.

1. Whether the Tribunal erred in assessing the notional income of the deceased housewife/labourer and failing to account for future prospects.

2. Whether the compensation awarded under the heads of loss of consortium, loss of estate, and funeral expenses was adequate as per established legal precedents.

The court relied on the judgment in Shiv Kumar v. Gainda Lal [2022 (0) AIJEL-SC-70014] to fix the notional income of a housewife at Rs. 7,500/- per month.

It applied National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680] regarding the addition of 40% for future prospects for a deceased aged below 40 years and the standardization of conventional heads (funeral expenses and estate loss).

Furthermore, it followed Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram [(2018) 18 SCC 130] to grant "parental" and "spousal" consortium to all legal dependents at Rs. 40,000/- each plus accruals.

The Court found the Tribunal’s assessment of Rs. 4,500/- monthly income too low given the 2014 accident date. Following Shiv Kumar, the Court re-fixed the income at Rs. 7,500/-.

To this, a 40% addition for future prospects was made (totaling Rs. 10,500/-), and 1/3rd was deducted for personal expenses since there were three dependents, resulting in a monthly dependency of Rs. 7,000/-.

Applying a multiplier of 16 (for age 35), the loss of dependency was calculated at Rs. 13,44,000/-. The Court further increased the conventional heads (funeral and estate) to Rs. 18,150/- each and awarded consortium of Rs. 48,400/- to each of the three claimants.

It enhanced the total compensation from Rs. 6,10,000/- to Rs. 15,25,500/-. The Insurance Company was directed to deposit the additional amount of Rs. 9,15,500/- with 9% interest per annum from the date of the claim petition within six weeks. The Tribunal was ordered to disburse the amount to the appellants upon verification.