When income is unproved, tribunals must assess notional income under Karnataka Legal Services Authority guidelines.

On 3 February 2016, the appellant was injured while travelling on a bus that collided with a Bolero Jeep.

The Tribunal awarded him ₹2,00,000 with interest at 6% per annum and held the fourth respondent-insurer liable.

Dissatisfied with the amount, the appellant appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

The High Court considered the appeal on the basis that the appellant was 68 years old, had sustained fractures, and had not proved his asserted agricultural income of ₹2,00,000 per annum.

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

2. What order should follow from the Court’s determination of the enhancement issue

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988, which provides for an appeal from an award of the Claims Tribunal.

Where the claimant has not proved income, the Tribunal must assess notional income by reference to the Karnataka Legal Services Authority guidelines; for an accident in 2016, the Court applied monthly notional income of ₹8,750.

The Court applied the multiplier method stated in Sarla Verma for a claimant aged 68, using a multiplier of 5.

It assessed the whole-body disability at 6% and calculated loss of future earnings using the income, multiplier, and disability figures.

Because the appellant had produced no proof of his asserted income, the Court used the applicable notional income of ₹8,750 per month. Applying the multiplier of 5 and a judicially assessed whole-body disability of 6%, it awarded ₹31,500 for loss of future earnings.

It upheld the Tribunal’s ₹50,000 award for pain and suffering, reduced medical expenses to the documented ₹13,900, and awarded ₹50,000 for loss of amenities, ₹26,250 for three months’ loss of income during recovery, and ₹25,000 for diet, conveyance, attendant and related charges. It left undisturbed the ₹25,000 award for future medical expenses.

The reassessed heads totalled ₹2,21,650.

It directed the fourth respondent-insurer to deposit the enhanced compensation with interest within eight weeks of receiving the judgment and directed that a modified award be drawn.