Notional Income Of Student Must Reflect Future Prospects For Motor Accident Claim, Cannot Be Treated As Unemployed: Calcutta High Court
The Calcutta High Court enhanced compensation in a motor accident claim case filed by parents who lost their two sons in a road accident, holding that the notional income of a deceased student should not be assessed merely on the basis of his temporary earnings during student life but must also reflect his future earning prospects.A Single Bench of Justice Biswaroop Chowdhury was hearing...
The Calcutta High Court enhanced compensation in a motor accident claim case filed by parents who lost their two sons in a road accident, holding that the notional income of a deceased student should not be assessed merely on the basis of his temporary earnings during student life but must also reflect his future earning prospects.
A Single Bench of Justice Biswaroop Chowdhury was hearing two connected appeals filed by the parents challenging the awards passed by the Motor Accident Claims Tribunal in separate claim cases arising out of the death of their sons in a 2015 road accident involving a gas tanker insured by Oriental Insurance Company Limited. The parents contended that the compensation awarded by the Tribunal was inadequate, particularly because the future prospects of the deceased students had not been properly considered.
With respect to one of the victims, who was a Class X student preparing to appear in the CBSE examination, the Court observed that students cannot be treated as unemployed while assessing compensation. The Court held:
“Even if the student is not earning, the notional income should be on the basis of future prospect, and income should not be considered treating him as unemployed.”
Considering that the student was on the verge of appearing for his school final examination and had prospects of pursuing employment, business, or a profession in the future, the Court held it reasonable to assess his notional monthly income at ₹8,000, instead of the lower figure adopted by the Tribunal. Applying the multiplier method and adding future prospects and conventional heads, the Court recalculated the compensation at ₹13 lakh, directing the insurer to pay the remaining amount of about ₹4.74 lakh with interest.
In the connected appeal relating to the other deceased son, the Court found that the Tribunal had correctly assessed the monthly income but noted that consortium had been granted only to one parent. Observing that both parents were entitled to consortium and other conventional heads, the Court directed payment of an additional ₹50,000 with interest.
Accordingly, the High Court partly allowed the appeals and directed the insurer to deposit the enhanced compensation before the Registrar General of the High Court within eight weeks, after which the claimants would be entitled to withdraw the amount upon completing the necessary formalities.
Case: Sanchita Sen Majumdar & Anr. VERSUS Oriental Insurance Co. Ltd. & Ors.
Case No: FMA 188 of 2024