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Motor Accident Compensation LawSupreme Court of India

Chandra Kala vs ICICI Lombard Motor Insurance Company Limited

Not available · 2025 INSC 1220Decided 26 Sept 2025
Not available
Justice K. Vinod Chandran · Justice N.V. Anjaria

Background

The appellants, the wife and three minor children of a mason who died in a 2014 motor accident, challenged the compensation amount awarded by the Motor Accident Claims Tribunal, which was upheld with modification by the High Court. The dispute centred on how much the deceased's monthly income should be treated as, since there was no documentary proof of his actual earnings as a mason, and on the amount payable for loss of consortium to the family members.

Decision Breakdown

The Supreme Court held that since no documentary proof of the deceased's income as a mason (a skilled worker) was available, it was reasonable to notionally fix his income at Rs. 9,500 per month, extrapolating from an earlier precedent's wage figures adjusted for inflation to the year of the accident. The Court applied the multiplier of 14 (as used by the High Court, consistent with the Pranay Sethi precedent), added 25% for future prospects, and deducted one-fourth for personal expenses, computing loss of future income at Rs. 14,96,250. It also awarded Rs. 40,000 each to the wife and three children for loss of consortium (following a specific precedent fixing that rate), plus Rs. 15,000 each for loss of estate and funeral expenses, bringing the total award to Rs. 16,86,250 with 6% annual interest.

Lesson Learnt

Where there is no documentary income proof for a deceased breadwinner in a motor accident claim, courts can determine a fair notional income based on comparable wage precedents rather than denying adequate compensation altogether; and consortium compensation is payable individually to each dependent family member, not just the spouse.

Chandra Kala vs ICICI Lombard Motor Insurance Company Limited – Legal Case Shots | LegalAware