#Personal Expenses Deduction

Bombay High Court revises compensation norms in fatal motor accident cases, establishing Rs. 30,000 as notional annual income for deceased graduates assisting in family businesses and awarding Rs. 48,000 consortium per dependent. The ruling reduces personal expense deduction to 1/2 for bachelors with unmarried siblings, impacting future claims under the Motor Vehicles Act.

Karnataka High Court rules that deduction for personal expenses in motor accident compensation must account for all dependants, not just those filing the claim. The court enhanced compensation by Rs. 8.28 lakh, setting a precedent for fairer dependency assessments under the Motor Vehicles Act.

Allahabad High Court holds that failure to implead the driver in motor accident claims does not invalidate the claim, emphasizing courts' duty to award just compensation regardless of procedural objections. The ruling reinforces that tribunals must apply the correct multiplier and dependency ratio, even in the absence of cross-objections, to ensure fair compensation under the Motor Vehicles Act.

The Chhattisgarh High Court ruled that deductions for personal expenses in motor accident compensation must reflect the actual number of dependents, rejecting the insurer’s plea for a fixed one-third deduction under the Sarla Verma principle. The court held that a one-fourth deduction was justified where six dependents relied on the deceased’s income, emphasizing a case-specific approach over a rigid formula.