Notional monthly income enhanced for skilled labour where salary certificates lack documentary substantiation.

The appellants/claimants filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement of the compensation awarded by the Additional Motor Accident Claims Tribunal, Kurud.

On May 24, 2024, the deceased, Homendra Kumar (aged 18), died from injuries sustained in an accident caused by the rash and negligent driving of a motorcycle driven by Respondent No. 1 and insured by Respondent No. 2.

The claimants asserted that the deceased earned ₹20,000 per month as a painter and sculptor.

The Tribunal, disbelieving the salary certificate (Ex-P/13) provided by the employer (AW-3), assessed compensation based on minimum wages, awarding a total of ₹16,85,456.

1. Whether the Tribunal erred in its assessment of the deceased's monthly income by disregarding the salary certificate and testimony of the employer.

2. Whether the compensation awarded requires enhancement based on the nature of the deceased's work and prevailing wage standards.

Section 173 of the Motor Vehicles Act, 1988.

Sarla Verma v. Delhi Transport Corporation [(2009) 6 SCC 121] regarding the multiplier and deductions for personal expenses.

National Insurance Company Ltd. v. Pranay Sethi [(2017) 16 SCC 680] regarding future prospects at 40% for deceased persons below 40 years.

Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram [(2018) 18 SCC 130] regarding filial consortium.

The Court examined the testimony of AW-3, who claimed the deceased was a skilled painter earning ₹1,000 per day, but noted that AW-3 failed to produce attendance or payment registers despite admitting their existence during cross-examination.

While the Court agreed with the Tribunal that the certificate (Ex-P/13) was not fully substantiated, it held that the Tribunal’s reliance on basic minimum wages was too restrictive given the skilled nature of the deceased's work as a painter and sculptor.

Considering the age, nature of the job, and economic conditions at the time of the accident, the Court revised the monthly income to ₹12,000 and applied a 40% addition for future prospects, a 1/2 deduction for personal expenses (as the deceased was a bachelor), and a multiplier of 18.

The court enhanced the total compensation from ₹16,85,456 to ₹19,30,400, granting an additional amount of ₹2,44,944, carrying interest at 6% per annum from the date of appeal (August 6, 2025).

Respondent No. 2 (Insurance Company) was directed to deposit the enhanced amount within 60 days, with specific directions for fixed deposits in the names of the appellants.