Madras HC Raises Fatal-Crash Victim’s Family Compensation To ₹16.25 Lakh, Fixing Notional Income At ₹16,000 After ₹50,000 Shop-Income Claim Lacked Proof

The appellants, dependants of T. Ramalingam, sought compensation under Section 166 of the Motor Vehicles Act, 1988, for his death in a road accident on 23 August 2018.

The Tribunal found the accident resulted from the offending vehicle’s rash and negligent driving and awarded compensation of ₹13,48,300, including ₹11,58,300 for loss of dependency

The claimants appealed under Section 173, contending that the deceased ran a provisional store and earned ₹50,000 per month, and that the Tribunal had fixed his income too low.

They produced no documentary proof of that income

The appeal arose under Section 173 of the Motor Vehicles Act, 1988, and concerned a claim for compensation under Section 166.

In assessing loss of dependency, the Court applied a monthly income figure, added 10% for future prospects, deducted one-fourth for the deceased’s personal and living expenses, and applied a multiplier of nine, having regard to the deceased’s age of 59 years.

The judgment cites no precedents; it also does not identify any separate statutory rule governing the transportation-expense award.

Although the claimants asserted monthly earnings of ₹50,000, they filed no documents to establish that income.

The Court nevertheless found the Tribunal’s ₹13,000 monthly assessment inadequate in light of the cost of living at the time of the accident and raised it to ₹16,000.

Applying 10% future prospects, a one-fourth deduction, and a multiplier of nine, it recalculated loss of dependency at ₹14,25,600.

It also awarded ₹10,000 for transportation expenses, which had not been included by the Tribunal, while leaving the other conventional heads undisturbed.

The insurer was directed to deposit the enhancement, less any amount already deposited, within six weeks of receiving the judgment; disbursement was to follow the Tribunal’s directions.