#loss of income calculation

Allahabad High Court ruled that oral testimony alone cannot override the absence of documentary proof for income claims in motor accident cases. The court upheld a Rs. 30 lakh compensation award but emphasized that tribunals must prioritize verifiable evidence over unsubstantiated claims, impacting future compensation calculations for self-employed or informal workers.

The Bombay High Court ruled that a fashion designer’s post-accident income trajectory-showing a sharp rebound after two years-can be used to reconstruct her pre-accident earning potential, even without filed tax returns. This sets a precedent for creative, evidence-based income estimation in non-salaried professions, ensuring fair compensation for professionals with irregular or undocumented earnings.