Unproved income must be assessed using the applicable KSLSA notional-income guidelines.

The deceased, aged 24 and a bachelor, died in a collision between his motorcycle and a Tata 407 on 30 July 2020. His parents and sister sought compensation before the MACT, Belagavi.

The Tribunal assessed his monthly income at ₹15,000, deducted one-third for personal expenses, and awarded ₹21,52,500 with 8% interest. The Insurance Company appealed, challenging the income assessment, the deduction for personal expenses, and the interest rate.

1. Whether the Tribunal’s assessment of the deceased’s income at ₹15,000 per month was excessive.

2. Whether the Tribunal was justified in awarding interest at 8% per annum rather than 6%.

The Court applied the Karnataka State Legal Services Authority’s guidelines for assessing notional income where actual income is not proved; for an accident in 2020, it adopted ₹13,750 per month.

Under Sarla Verma v. Delhi Transport Corporation, a bachelor’s income is reduced by 50% for personal and living expenses, and the multiplier applicable to a deceased aged 20–25 is 18.

Under National Insurance Co. Ltd. v. Pranay Sethi, 40% is added for future prospects.

The Court also relied on Magma General Insurance Co. Ltd. v. Nanu Ram and Pranay Sethi for consortium and conventional heads of compensation.

It invoked Order XLI Rule 33 of the Code of Civil Procedure to modify the award.

The claimants had produced no material proof of the deceased’s income; possession of a driving licence alone did not establish that he worked as a driver or earned ₹15,000 per month. The Court therefore substituted the 2020 notional income of ₹13,750, added 40% for future prospects, deducted 50% because the deceased was a bachelor, and applied multiplier 18, calculating loss of dependency at ₹20,79,000.

It additionally awarded ₹1,32,000 for consortium, ₹33,000 for loss of estate and funeral expenses, and ₹5,000 for transportation of the body, making total compensation ₹22,49,000.

Although the Court stated that there was no sufficient reason to modify the interest awarded, its operative order specifies interest at 6% per annum.

The Insurance Company was directed to deposit the amount with accrued interest within eight weeks; apportionment and disbursement were left to the Tribunal’s order.