Unproved driver income may be reasonably estimated by reference to skilled-worker wages.

Prasanta Behera died in a road accident on 30 August 2016 involving a pickup van insured with the appellant.

His family members sought compensation, alleging that he earned ₹15,000 per month as a driver.

The Tribunal awarded ₹27,43,200 with 7.5% annual interest.

The insurer appealed, disputing the claim’s maintainability and the assessment of compensation.

An earlier claim had been withdrawn, and the Tribunal had found the present claim maintainable.

The insurer led no evidence.

The High Court noted that the deceased was 34 years old, worked as a driver, and that the record did not establish his precise income.

1. Whether the claim was maintainable in light of the earlier claim application, which had been dropped and disposed of.

2. Whether the Tribunal’s compensation award required modification because the deceased’s income was not supported by concrete evidence.

3. Whether the insurer was liable to pay compensation for the death caused by the insured vehicle.

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

The Court applied the principles of assessing compensation by estimating income where precise proof is unavailable, deducting the deceased’s personal and living expenses, applying an age-based multiplier, and accounting for future prospects and non-pecuniary damages.

It also applied the principle that, where the insured vehicle’s liability is established, the insurer must indemnify the owner in accordance with the insurance cover.

The judgment identifies no specific precedent by name.

The Court rejected the maintainability objection because the earlier claim had been dropped and disposed of, and the insurer could not establish a basis to bar the present claim.

It accepted the police charge sheet and the evidence concerning the accident as supporting the finding that the driver’s rash and negligent driving caused the death; as the vehicle was insured, the insurer was liable to indemnify the owner.

On quantum, the Court found the claimed income of ₹400 per day unsupported by concrete evidence.

Considering the deceased’s work as a driver and the skilled-labour wage figure placed before it, the Court estimated income at ₹300 per day, or ₹1,08,000 annually.

After deducting one-fourth for personal expenses, applying a multiplier of 16, adding 40% for future prospects, and awarding enhanced conventional damages of ₹91,000, it assessed compensation at ₹19,05,400.

It partly allowed the appeal and modified the compensation to ₹19,05,400, with interest at 6% per annum from the date the claim application was filed.

The insurer was directed to deposit the amount within eight weeks; the Court also prescribed how the amount was to be disbursed and directed refund of any statutory deposit to the insurer with accrued interest.