Notional income assessment for compensation must reflect realistic earning potential and comply with established legal precedents regarding specific heads of compensation and limits.

JUDGMENT

This appeal is filed by the claimants 1, 3 and 4 in OP (MV)

No.33 of 2009 on the file of the Motor Accidents Claims Tribunal, Attingal, claiming enhancement of compensation. The respondent herein was the third respondent before the tribunal.

2. According to the claimants, on 05.02.2008, at about

04.45 p.m., the deceased was knocked down by a car bearing registration No.KL-01-V-1136, driven by the second respondent in a rash and negligent manner and as a result, the deceased sustained serious injuries and succumbed to the injuries while undergoing treatment. The claimants who were the legal heirs of the deceased, approached the tribunal claiming a total compensation of ₹18,02,000/- which is limited to ₹18,00,000/-

3. Though notice was served on the first and second respondents/owner and the driver of the offending vehicle respectively, they remained absent and were set ex parte before the tribunal. The third respondent insurer filed a written statement, admitting the insurance policy, disputing the liability and quantum of compensation claimed. Before the tribunal, Exts.A1 to A10 were marked. The tribunal, after analysing the pleadings and materials on record, found that the accident occurred due to negligence on the part of the second respondent and the appellants/claimants were awarded a total compensation of ₹12,16,000/- as compensation under different heads with interest @ 9% per annum from the date of petition till realization against the respondent being the insurer and in default of payment as above, penal interest @ 12% per annum was also awarded. Dissatisfied with the quantum of compensation awarded by the tribunal, the claimants have come up in appeal.

4. Heard the learned counsel for the appellants and the learned standing counsel for the respondent insurer.

5. The learned counsel for the appellants claims enhancement mainly under the following heads:

I. Notional Income The learned counsel for the appellants submitted that though an amount of ₹12,000/- was claimed as the monthly income of the deceased, who was the Chief Editor and the Managing Director of Rawath News Group, the tribunal had taken only an amount of ₹4,000/-. The learned counsel further submitted that in the F.I.S also, it is seen that the deceased was the Chief Editor and Managing Director of Rawath News Group. However, no document has been produced to prove the income of the appellant. The learned counsel for the appellants further submitted that even going by the judgment in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. [2011 (13) SCC 236] , the monthly income of a coolie for an accident in 2008 is taken as ₹6,500/- and sought enhancement of the income. However, considering the fact that the deceased was the Chief Editor and Managing Director of Rawath New Group and in order to award a just and reasonable compensation, I find it appropriate to re-fix the notional monthly income at ₹9,000/-.

II. Funeral expenses On a perusal of the award, it is seen that the tribunal had awarded an amount of ₹25,000/- under the head funeral expenses, whereas following the judgment in National Insurance Company Ltd. v. Pranay Sethi [2017 (4) KLT 662 (SC)], the appellants were entitled only for an amount of ₹15,000/- towards the conventional heads. Therefore, there will be a deduction of ₹10,000/- under the said head.

III. Loss of estate The learned standing counsel appearing for the insurance company submitted that the tribunal had awarded an amount of ₹20,000/- under the head loss of estate, whereas following the judgment in Pranay Sethi (supra), the appellants are entitled for an amount of ₹15,000/-. Hence, there will be a deduction of ₹5,000/- under the afore head.

IV. Loss of consortium/loss of love and affect