When income is unproved, 2021 motor accident claims must use the Karnataka Legal Services Authority income chart.

On 15 August 2021, the deceased, Ranjeet Patil, died after a tanker collided with his motorcycle from behind

His dependants sought compensation before the Motor Accidents Claims Tribunal, Chikodi.

The Tribunal awarded ₹27,92,368, including ₹25,59,368 for loss of dependency, and fastened liability on the insurer

The insurer appealed, principally contending that the Tribunal had assessed the deceased’s income too highly; the parties agreed that the Tribunal record was unnecessary because the dispute concerned income assessment

1. Whether the Tribunal’s assessment of the deceased’s income and the resulting compensation required modification

2. Whether the insurer’s liability to pay compensation should be disturbed

Under Section 173(1) of the Motor Vehicles Act, 1988, an aggrieved party may appeal against a Tribunal’s award.

Where income is not proved by documentary evidence, the court may assess notional income by reference to the Karnataka Legal Services Authority’s chart; for an accident in 2021, the applicable figure was ₹14,250 per month.

Applying National Insurance Co. Ltd. v. Pranay Sethi, 25% is added to income towards future prospects for a deceased aged 42, one-fourth is deducted for personal expenses where there are five dependants, and the appropriate multiplier is 14.

The Court also applied Pranay Sethi to award consortium to the five dependants at ₹40,000 each, with a 10% escalation, and applied a 10% escalation to loss of estate and funeral expenses.

The deceased’s income was not proved, so the Court substituted the 2021 notional-income figure of ₹14,250 for the Tribunal’s assessment of ₹16,250.

It added 25% for future prospects, deducted one-fourth for personal expenses, and applied multiplier 14, calculating loss of dependency at ₹22,44,480.

It retained the conventional heads but adjusted them to ₹2,20,000 for consortium and ₹33,000 in total for loss of estate and funeral expenses.

The Court therefore reduced the total award while leaving the insurer’s liability undisturbed.

The award was modified from ₹27,92,368 to ₹24,97,480, with interest at 6% per annum from the date of the petition until realisation.

The insurer was directed to deposit the compensation and accrued interest before the Tribunal within eight weeks of receiving the certified judgment; any excess deposit was to be refunded to the insurer.