Proven salary records override notional income assessments for calculating motor accident compensation.

On February 22, 2024, Sureshbhai Ramanbhai Chauhan ("the deceased"), aged 42, succumbed to injuries sustained in a vehicular accident when a tanker, driven in a rash and negligent manner, struck his motorcycle

The appellants (the deceased’s widow, two children, and parents) filed a claim petition asserting the deceased earned Rs. 21,000 monthly as a driver and Rs. 9,000 from animal husbandry

The Motor Accident Claims Tribunal (Main), Kheda at Nadiad, awarded Rs. 18,08,000 with 7.5% interest, having assessed the deceased’s income at only Rs. 10,000 per month

Dissatisfied with the quantum, the claimants appealed for enhancement

1. Whether the Tribunal erred in assessing the monthly income of the deceased at Rs. 10,000 despite oral and documentary evidence (Exh. 33) indicating higher earnings

2. Whether the compensation awarded under the heads of future prospects, loss of consortium, loss of estate, and funeral expenses required enhancement as per established precedents

The Court followed the principles for calculating "just compensation" under the Motor Vehicles Act.

It relied on Sarla Verma v. Delhi Transport Corporation (2009) regarding the appropriate multiplier and deduction for personal expenses

It applied National Insurance Company Ltd. v. Pranay Sethi (2017) to determine a 25% addition for future prospects for a deceased aged 40–50 and to fix standardized sums for loss of estate and funeral expenses

Finally, it applied Magma General Insurance Co. Ltd. v. Nanu Ram alias Chuhru Ram (2018) to grant consortium to all legal representatives

The Court reviewed the deposition of the deceased's employer (Exh. 33) and bank records from Kaira District Central Co-Operative Bank, which showed monthly salary payments ranging from Rs. 12,097 to Rs. 21,000

Consequently, the Court reassessed the deceased’s monthly income at Rs. 15,000

Following Pranay Sethi, the Court added 25% for future prospects (Rs. 18,750 total) and deducted 1/4th for personal expenses due to the five dependents, resulting in a monthly dependency of Rs. 14,063

A multiplier of 14 was applied based on the deceased’s age

Regarding conventional heads, the Court found the Tribunal’s awards insufficient; it increased the loss of estate and funeral expenses to Rs. 18,150 each and awarded Rs. 2,42,000 for consortium (Rs. 48,400 for each of the five claimants)

The Court held that the appellants are entitled to an additional amount of Rs. 8,32,884 over the original award

The Insurance Company was directed to deposit this enhanced amount with 7.5% interest per annum from the date of the claim petition within six weeks

The Tribunal was ordered to disburse the amount to the claimants after due verification and deduction of any deficit court fees