Madras High Court· 24 July 2026
How is loss of dependency computed where the claimants prove no income for the deceased?
M/s Tamil Nadu State Express Transport Corporation Limited v. M.Palaniyammal
C.M.A(MD)No.44 of 2025 · C.M.A(MD)No.44 of 2025
Coram: Justice K.Murali Shankar
Answer
The Tribunal may fix a monthly income having regard to the age of the deceased, his avocation and the date of the accident, where nothing beyond an identity card is produced to establish his profession or earnings. Ten per cent is then added towards future prospects following National Insurance Company Ltd. v. Pranay Sethi, one-third is deducted towards personal and living expenses according to the number of dependants, and the multiplier is applied as laid down in Sarla Verma v. Delhi Transport Corporation.
Headnote
Motor Accident Claims Tribunal — Loss of dependency — Notional income — Future prospects — Multiplier — Consortium —
Loss of dependency — Income not proved — Notional income fixed on age and avocation —
Held: Where the claimants prove neither profession nor monthly income beyond an identity card, the Tribunal may fix a monthly income having regard to the age of the deceased, his avocation and the date of the accident, and such a figure is not excessive. (¶11)
Future prospects — Deduction for personal expenses — Multiplier —
Held further: Ten per cent is added towards future prospects, one-third deducted towards personal and living expenses on the number of dependants, and the multiplier applied as settled by the Supreme Court. Appeal dismissed. (¶11, ¶13)
Rash and negligent driving — Driver an interested witness — No corroboration —
Held further: The driver examined by the Corporation is an interested witness; where the conductor is not examined and nothing corroborates him, the unshaken eyewitness account prevails. (¶9)
In the Court's own words
Paragraph 11The Tribunal, as rightly contended by the learned Counsel for the claimants, reling on the postmortem certificate, has fixed the age of the deceased as 59 years and the same has not been disputed by the respondent's side before the Tribunal. No doubt, though the claimants have alleged that the deceased was running a Saloon in the name and style of Sathesh Saloon and was earning Rs.25,000/- per month, except producing the identity card in the name of deceased Mookkan issued by the General Secretary of Barber Employment Welfare Society, they have not produced any other evidence to prove the profession nor the monthly income of the deceased. But the Tribunal considering the age of the deceased and his avocation and the date of accident, has fixed the monthly income at Rs.10,500/- and the same cannot be said to be excessive. The Tribunal, taking note of the decision of the Hon'ble Supreme Court in National Insurance Company Ltd., Vs. Pranay Sethi and others reported in 2017(2) TNMAC 609, has rightly added 10% of the income towards the future prospects and after such addition, the income would come to Rs.11,550/-. The Tribunal, considering the number of dependents, has rightly deducted 1/3rd of the income towards personal and living expenses of the deceased and after such deduction, the income would be Rs.7,700/-. As per the decision of the Hon'ble Supreme Court in Sarla Verma and others Vs. Delhi Transport Corporation and another reported in 2009(2) TNMAC 1 (SC), the Tribunal has rightly applied the multiplier “9” and arrived the loss of dependency at Rs.8,31,600/- and the same cannot be found fault with. The Tribunal has rightly awarded Rs.40,000/- to the first claimant towards spousal consortium and Rs.40,000/- each to the claimants 2 to 4 – children of the deceased towards parental consortium. The Tribunal has also awarded Rs.15,000/- for funeral expenses and also Rs.15,000/- for loss of estate and the same cannot be faulted.
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