Unproved earnings in 2013 motor-accident claims warrant notional monthly income of ₹8,000.

The claimant sustained a fracture of the left radius and dislocation of the left elbow in a road accident on 23 June 2013.

He filed a claim under Section 166 of the Motor Vehicles Act, 1988.

The Tribunal found the car driver negligent and awarded ₹1,74,688, including compensation for pain and suffering, medical expenses, future loss of earnings and future medical expenses.

The claimant appealed under Section 173(1), seeking enhancement.

The Tribunal had assessed his monthly income at ₹5,000, whole-body disability at 8%, and awarded ₹81,600 for future loss of earnings.

The claimant relied on medical evidence assessing 40% disability to the left upper limb and 12% to the whole body, and contended that the income and several heads of compensation were assessed too low.

1. Whether the claimant was entitled to enhancement of compensation awarded by the Tribunal

The claim arose under Section 166 of the Motor Vehicles Act, 1988, and the appeal was brought under Section 173(1) of that Act.

The Court assessed compensation by determining notional income, the appropriate period of lost earnings during treatment, and functional loss of earning capacity, and by separately considering pain and suffering, loss of amenities, incidental expenses and future medical expenses.

The judgment cited no precedent.

The Court accepted that the claimant’s asserted business income was not supported by evidence and therefore used the notional income of ₹8,000 per month for 2013.

It assessed three months’ lost income at ₹24,000, increased pain-and-suffering compensation to ₹50,000 for the fracture and elbow dislocation, and retained 8% whole-body disability as a just assessment of loss of earning capacity despite the fracture having united.

Applying a multiplier of 17, it calculated future loss of earnings at ₹1,30,560.

It made no change to the medical expenses or future medical expenses, treated the existing ₹10,000 award as incidental expenses, and added ₹20,000 for loss of amenities.

It reassessed compensation at ₹2,77,648, as against the Tribunal’s award of ₹1,74,688, with interest at 6% per annum as stated in the order.

The insurer was directed to deposit the enhanced compensation before the Tribunal within six weeks, and the enhanced amount with interest was ordered released to the claimant on deposit.