Undocumented earnings do not justify assessing income below Karnataka’s ₹11,000 monthly benchmark for 2017 accident claims.

The claimants, the wife, children and parents of the deceased, sought compensation for his death in a road accident on 17 December 2017.

The Tribunal found that the deceased, aged 54, worked as a mason and centering worker, but, for want of documentary proof of his claimed income of ₹20,000 per month, assessed his monthly income at ₹10,000.

It awarded ₹17,45,000, including ₹10,89,000 for loss of dependency.

The claimants appealed, limiting their challenge to the income assessment and seeking application of the Karnataka notional-income figure of ₹11,000 per month for 2017.

Whether the Tribunal was justified in assessing the deceased’s monthly income at ₹10,000, or whether it should have applied the notional income of ₹11,000 for an accident in 2017.

In assessing compensation for loss of dependency, where actual income is not proved by documentary evidence, the court may determine a reasonable income by reference to the year of the accident and the deceased’s occupation.

For Karnataka motor accident claims arising in 2017, the applicable notional income was ₹11,000 per month.

Under National Insurance Co. Ltd. v. Pranay Sethi, future prospects are added according to the applicable age and employment category; Hem Raj v. Oriental Insurance Co. Ltd. confirms that future prospects may be awarded even where income is assessed by guesswork.

The appeal was brought under Section 173(1) of the Motor Vehicles Act.

The Tribunal had accepted the deceased’s occupation as a mason and centering worker; it reduced the claimed income only because documentary proof was lacking.

The High Court rejected the unsupported claim of ₹20,000 per month but held that the absence of such proof did not justify assessing income below the applicable 2017 notional figure of ₹11,000.

It retained the Tribunal’s 10% addition for future prospects, one-fourth deduction for personal expenses, and multiplier of 11.

On that basis, it recalculated loss of dependency as ₹11,97,900, an increase of ₹1,08,900.

It modified the award by enhancing compensation by ₹1,08,900, with interest at 6% per annum from the date of the petition until realization.

The Tribunal’s findings and awards on the remaining heads were left undisturbed.