Unproved deceased income must be assessed using the applicable Lok Adalat notional-income guidelines.

On 17 October 2022, Sagar S. died after a bus collided with the car he was driving.

The Motor Accident Claims Tribunal found the bus driver negligent and awarded the claimants ₹73,00,000 with interest at 6% per annum.

The insurer appealed, challenging the income assessed and the award for loss of love and affection; the claimants cross-objected, seeking enhancement.

Whether the deceased’s income, for calculating loss of dependency, was properly assessed by the Tribunal or should be based on notional income.

Whether the compensation under loss of consortium and loss of love and affection, and the total award, required modification.

The Court considered the appeal under Section 173(1) of the Motor Vehicles Act, 1988.

For assessing compensation, it applied the 2022 Lok Adalat guidelines to determine notional monthly income where satisfactory proof of the deceased’s income was absent.

It calculated loss of dependency by adding 40% for future prospects, applying a multiplier of 16 for the deceased’s age, and deducting one-third for personal expenses because there were three dependants.

It further held that consortium was payable to each dependant, while loss of love and affection was not a separate head of compensation; funeral expenses and loss of estate were maintained at the amounts awarded by the Tribunal.

The income-tax returns relied on by the claimants were in the mother’s name, and the Court found no satisfactory proof of the deceased’s income. It therefore substituted notional income of ₹15,500 per month under the 2022 Lok Adalat guidelines.

Applying the future-prospects addition, multiplier and personal-expenses deduction, it assessed loss of dependency at ₹27,77,600.

It replaced the Tribunal’s awards of ₹44,000 for consortium and ₹55,000 for loss of love and affection with ₹1,32,000 for consortium to three dependants, and excluded loss of love and affection as a separate head.

It retained ₹16,500 each for funeral expenses and loss of estate, resulting in total compensation of ₹29,42,600.

It directed the insurer to deposit the compensation and accrued interest within eight weeks of receiving a certified copy of the judgment; the amount is to be disbursed in accordance with the Tribunal’s award.

Both the insurer’s appeal and the claimants’ cross-objection were disposed of, with no order as to costs.