The Supreme Court set a formula for computing a deceased person’s income in motor accident compensation claims, distinguishing salaried from self-employed earners.
Tribunals and lower courts had applied inconsistent methods when projecting future earnings for dependents. Standardization aims to reduce arbitrary variation in award amounts across similar cases.
Self-employed victims require different evidentiary bases — business records, tax filings and industry norms — than salaried workers with documented wages. The court’s formula guides multipliers applied to proven income.
Motor accident claims constitute a large share of India’s civil litigation, making uniform compensation principles economically significant for insurers and families alike.
Created by Ayen Stabel.
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Sources:
https://www.verdictum.in/weekly-summary/weekly-overview-supreme-court-judgments-june-29-july-03-2026-1617210