Notional Income for Deceased - Generally determined based on the deceased's age, occupation, and earning capacity at the time of the accident. For minors or non-earning members, a standard notional income is adopted; for earning members, actual income or evidence thereof is considered. Deduction of 50% is often applied if the deceased was survived by parents, and future prospects (typically 40%) are added to the notional income ORIENTAL INSURANCE CO. LTD. VS BHAIRO PRASAD - Allahabad.
Age and Occupation Impact - Deceased aged 18-19, not studying for a professional degree, and with no technical knowledge, was considered a legally employable age. For minors (e.g., 10 or 12 years old), a lower notional income (e.g., Rs.15,000 or Rs.5,000 per month) was adopted based on their age and presumed earning capacity ORIENTAL INSURANCE CO. LTD. VS BHAIRO PRASAD - Allahabad, Kaushalaya Rani VS Lekh Raj @ Lekhu - Punjab and Haryana.
Future Prospects - Addition of 40% towards future prospects is standard in many rulings, applicable to earning members, to account for future income growth. In cases involving minors or non-earning members, this may not be added, or a fixed notional income is used Sumanbai w/o Subhash Mirkale VS Khadar Mastansab Shaikh - Bombay, United India Insurance Co. Ltd VS Surender Singh @ Chhinda - Punjab and Haryana.
Special Cases - For housewives or non-earning members, courts have sometimes assigned specific notional incomes (e.g., Rs.8,910 or Rs.15,000) based on their standard of living or presumed earning capacity Gurjinder Singh VS Jaswant Singh @ Madhu - Punjab and Haryana.
Evidence and Calculation - Courts rely on cogent evidence; where income proof is lacking, courts resort to notional income. If actual income is proved, it is preferred over notional estimates. Courts may enhance compensation upon re-assessment of income based on evidence or judicial discretion Abdul Rahim VS National Insurance Company Ltd - Jammu and Kashmir, Arulmary VS Kavitha - Madras.
Legal Provisions - Under the Motor Vehicles Act, 1988, Sections 166 and 163-A govern compensation calculations, emphasizing the use of notional income for non-earning members or minors and actual income for earning individuals ORIENTAL INSURANCE CO. LTD. VS BHAIRO PRASAD - Allahabad, Shanti Nayak VS Oriental Insurance Co. ltd. - Jharkhand.
Analysis and Conclusion:
The determination of notional income in motor vehicle accident claims hinges on the deceased's age, occupation, earning capacity, and evidence on record. For minors and non-earning members, courts adopt standardized notional incomes, often adjusted for future prospects. For earning members, actual income or credible evidence is preferred, with deductions (like 50%) for survivors and addition (around 40%) for future prospects. Courts may enhance compensation upon re-evaluation of income evidence, ensuring fair compensation based on the deceased's circumstances ORIENTAL INSURANCE CO. LTD. VS BHAIRO PRASAD - Allahabad, Sumanbai w/o Subhash Mirkale VS Khadar Mastansab Shaikh - Bombay, Kaushalaya Rani VS Lekh Raj @ Lekhu - Punjab and Haryana, Arulmary VS Kavitha - Madras.
(A) Motor Vehicles Act, 1988 – Section 168 – Compensation – Determination – Notional income – Deceased at time of accident was of ... and survived by both parents therefore while determining multiplicand, 50% deducted from notional income – Deceased was 18-19 years ... a legally employable age and not studying for any professional degree and possessed no technical knowledge – Held, notional income ... The rival submissions of the counsel for the part....
evidence is brought on record - Tribunal has, resorted make assessment of compensation on basis of notional income of deceased – ... deceased – It is trite that, even in a case estimation of income on notional basis, addition of 40% towards future prospects is ... Tribunal fixed notional income of deceased to tune of Rs.3,000/- p.m – Pertinently nothing is added towards future prospects of the ... The Tribunal has, therefore, resort....
(A) Motor Vehicles Act, 1988, S.166--Accident--Income--Notional Income--Deceased was a housewife, her notional income was to be taken ... Income--Just compensation--Deceased was aged 32 years--She was 12th standard pass and was housewife--Total compensation of Rs.8.91 ... (Para 4) ... (B) Motor Vehicles Act, 1988, S.166--Accident--Income--Notional ... Thus, the notional income of....
cogent or convincing evidence- In se circumstances it would safe to take notional income of deceased annum - Appeal allowed/p ... income of deceased - This is so because claimants have not been able to prove income of deceased by leading any cogent evidence ... income of deceased in such like matters was taken and compensation was computed by deduction to extent and applying multiplier ... In the instant case, the acciden....
Motor Vehicles Act, 1988, S.163-A--Accident--Income--Notional Income--Deceased was child aged 10 years--Notional income of Rs. 15,000 ... The child was only 10 years old, therefore, the notional income of Rs.15,000/- was rightly taken. ... 6. In Puttamma and others Vs. K.L. ... The Tribunal, on appreciation of the oral and documentary evidence took the notional income at Rs.15,000/- and calculated the compensation....
Issues: Interpretation of future prospects and loss of estate, determination of notional income of deceased, entitlement to ... income of the deceased and the applicable legal provisions. ... income of deceased and entitlement to enhancement - Appellant's claim for enhancement of compensation dismissed Fact of the ... The Tribunal considering the evidence let in by the appellant and the materials on record, has fixed a sum of Rs.6,000/- per month as the not....
– Notional Income – Deceased was student of 12th class – Notional income of Rs.5000/- p.m taken as that of unskilled labourer at ... of notional income also. ... (A) Motor Vehicles Act, 1988, S.166 – Accident – Future Prospect – Income towards future prospects is admissible even in the case ... The sole submission raised by learned counsel is that in the facts of the present case, the deceased was a minor and his notional#....
The main contention was the calculation of compensation, specifically the notional income of the deceased. ... Issues: The main issue was the calculation of compensation, particularly the notional income of the deceased and the quantum ... Ratio Decidendi: The court re-assessed the notional income of the deceased and enhanced the compensation amount based on the ... Rs.9,000/- as notional income....
income of deceased—Notional income is taken only in case in which deceased is found to be a non-earning member—Instantly, on the ... Motor Vehicles Act, 1988—Section 166—Enhancement of compensation—Tribunal fixing amount of compensation on the basis of notional ... basis of evidence laid by claimant’s witness it is held that deceased was a earning member—Amount of compensation enhanced—Application ... he Tribunal will take notional income#H....
of notional income—Committed material irregularity is not accepting the salary of deceased. ... (A) Motor Vehicles Act, 1988—Section 166—Compensation—Notional income—Deceased was actually working and was having independent income ... prior to accident—Notional income as per Schedule II of the Act—Applicable only in cases of non-earning members—Where deceased was ... The provision of notional #HL_S....
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