Motor Accident Claim | Kerala High Court Enhances Victim's Notional Income Based On Overseas Remittances Despite Lack Of Formal Salary Proof
K. Salma Jennath
8 Jan 2026 7:00 PM IST
The Kerala High Court enhanced the notional income of an accident victim who was employed abroad and had sought compensation under Motor Vehicles Act, based on certain factual aspects even though the claimant had failed to produce salary certificate as per Diplomatic and Consular Officers (Oaths and Fees) Act.
Justice Harisankar V. Menon was considering two appeals filed against the award passed by the Motor Accidents Claims Tribunal, one filed by the insurance company and the other by the claimant/victim of the accident.
The claimant had met with an accident while walking on a road and suffered serious injuries. He filed a claim before the Tribunal for Rs. 40 lakhs and contended that he was earning a monthly income of Rs. 75,000 prior to the accident in his job as Quality Control Officer in Saudi Arabia.
The Tribunal found that no authenticated document was produced to support the claim of monthly income or educational qualifications. It thus fixed the notional income of the claimant was Rs. 15,000/-. It also assessed the functional disability at 75% and awarded a sum of Rs. 30,79,320/-.
The insurer and the claimant both challenged the award. The insurer submitted before the High Court that Tribunal ought not have fixed the notional income as Rs. 15,000/- and compensation should have been as per Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Limited (2011).
The claimant contended that the notional income needs to be enhanced based on the various documents produced as evidence before the Tribunal. He also prayed that the disability be fixed at 90% as per the determination of the Medical Board.
It was also argued that the Tribunal did not consider the fact that the claimant was entitled to bystander expense and that the award of compensation for 'pain and suffering' and 'loss of amenities in life' was not in tune with the disability quantified.
With respect to the issue regarding determination of notional income, the Court remarked that even though salary certificate was not produced, the factual aspects like the appointment letter of the claimant showing the monthly salary, the bank statements and the amounts being credited, etc. can be considered to make a reasonable estimation of the notional income.
The Court observed:
“It is true that the learned senior counsel is justified in contending that no valid documents, with reference to the provisions of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948, (hereinafter referred to as the 'Act, 1948') were produced by the claimant before the Tribunal. However, in my opinion, even in such a situation, certain factual aspects cannot be lost sight of… I am of the opinion that, though no salary certificate, much less a certificate in accordance with the provisions of the Act, 1948, has been relied on by the claimant, a reasonable estimation requires to be carried out as regards the notional income of the claimant in the case at hand.”
It then re-fixed the notional income at Rs. 22,500/- per month.
Next, looking at the contention regarding the fixation of the quantum of disability, the Court relied on the Medical Board's finding that there was 90% permanent disability and 'psychiatric impairment'. It felt that since the claimant also around 75 years old and suffering from traumatic brain injury, he cannot live independently without help. Thus, the Court determined functional disability at 100%.
However, the Court refused to grant compensation for bystander expenses since no evidence was adduced by the claimant to prove the same for the interim period from the time of the accident in 2016 till now.
It also did not enhance the compensation under the heads 'pain and suffering' and 'loss of amenities in life' since adequate compensation was awarded under other heads.
The Court thus dismissed the insurer's appeal and partly allowed the claimant's appeal and modified the total compensation. It gave an additional sum of Rs. 6,75 lakhs under the head 'compensation for continuing or permanent disability' and with the re-fixed notional income, the final compensation to Rs. 38,29,320.
Case No: M.A.C.A. Nos.2619 of 2021 & connected case
Case Title: The Divisional Manager v. Ameer Hamsa & connected case
Citation: 2026 LiveLaw (Ker) 12
Counsel for the appellant: Mathews Jacob (Sr.), P. Jacob Mathew, Preethi R. Nair.
Counsel for the respondents: A.R. Nimod, M.A. Augustine, K.S. Santhi