Bombay High Court
Insurance LawCivil Law

Notional income cannot be assessed when evidence of the deceased’s salary is available.

The New India Assurance Co.Ltd. vs Prashanti Mahendra Aherkar And Ors.

Bombay High CourtJUDGMENT: October 07, 20262 MIN READSOURCE JUDGMENT
Notional income cannot be assessed when evidence of the deceased’s salary is available.. The New India Assurance Co.Ltd. vs Prashanti Mahendra Aherkar And Ors.. Bombay High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The deceased died in a motor accident on 7 June 2005. The Tribunal assessed compensation by treating his monthly income as notional income of Rs.16,000 and awarded Rs.16,00,000, while attributing 20% responsibility for the accident to the deceased and 80% to the tempo driver.

Source reference: para. 2–3, 12

The insurer appealed, challenging the quantum, particularly the income assessed by the Tribunal. The claimants relied on a salary certificate showing monthly salary of Rs.13,857.

Source reference: para. 4–5, 7
02

Issues

Whether the Tribunal was justified in assessing the deceased’s income at Rs.16,000 per month despite evidence of his salary.

Source reference: para. 2–4, 7

Whether the compensation required reassessment to account for future prospects and conventional heads, while applying the deceased’s 20% share of responsibility for the accident.

Source reference: para. 11–12
03

Law Applied

The Court applied the principle that notional income should not be used where evidence of the deceased’s salary is available.

Source reference: para. 7

It also held that future prospects and compensation for loss of consortium, loss of estate and funeral expenses should be included in determining just compensation, while compensation for loss of love and affection should not be awarded.

Source reference: para. 11

The judgment cites no specific statutory provision or precedent.

Source reference: no citation
04

Reasoning

The Court preferred the employer’s salary certificate over figures in the claim application and the widow’s affidavit, noting that the certificate had not been effectively challenged in cross-examination.

Source reference: para. 9–10

It excluded two salary slips because they had not been tendered in evidence or admitted.

Source reference: para. 8

From the certified monthly salary of Rs.13,857, the Court deducted Rs.175 for professional tax and used a monthly income of Rs.13,682. It then recalculated compensation by including 50% future prospects and the specified conventional heads, and excluding loss of love and affection.

Source reference: para. 10–11

Applying the Tribunal’s finding that the deceased bore 20% responsibility, the Court calculated the claimants’ entitlement at 80% of the reassessed compensation.

Source reference: para. 12
05

Holding

The Court reassessed the total compensation at Rs.26,44,005 and the claimants’ 80% entitlement at Rs.21,15,204.

After accounting for the Tribunal’s award and the Rs.5,000 awarded for loss of love and affection, it ordered the insurer and the vehicle owner jointly and severally to pay enhanced compensation of Rs.5,10,204, with interest at 6% per annum from the date of the application, within eight weeks of uploading the order.

Source reference: para. 10, 13

The appeal and pending application were disposed of.

Source reference: para. 14–15
Bombay High Court

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The New India Assurance Co.Ltd.vsPrashanti Mahendra Aherkar And Ors.

Bombay High Court · October 07, 2026

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