Karnataka High Court Applies Notional Monthly Wage from Centre's Notification for Motor Accident Compensation

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Published 26 October 2026

Case: Not provided in source
Court: High Court of Karnataka
Bench: Justice Hanchate Sanjeevkumar
Citation: Not provided in source
Statutes: Employees Compensation Act, 1923 — s.4(1)(b)
Motor Vehicles Act, 1988
Source: LiveLaw

Bottom Line Up Front (BLUF)

The Karnataka High Court, in a motor accident case, applied the notional monthly wage of Rs. 15,000 as per the Central Government's notification dated 29.05.2018, granting Rs. 3.90 lakh compensation. The court held that this notification, issued under Section 4(1)(b) of the Employees Compensation Act, 1923, is applicable for calculating compensation under the Motor Vehicles Act, 1988.

Ratio Decidendi · Legal Principle Established

The notional monthly wage specified in the Central Government's notification under Section 4(1)(b) of the Employees Compensation Act, 1923, is applicable for calculating compensation in motor accident cases under the Motor Vehicles Act, 1988, particularly when the claimant's income is not proven.

Practice & Procedural Impact for Advocates

Advocates should cite the Central Government's notification dated 29.05.2018 for notional monthly wage calculations in motor accident claims where income proof is absent. Litigants can rely on this notification to establish a base income for compensation even without specific earnings evidence.

Key Legal Takeaways

1Central Government's notification on notional wages under the Employees Compensation Act, 1923, applies to Motor Vehicles Act, 1988 cases.
2A notional monthly wage of Rs. 15,000 can be used for compensation calculation when actual income is not proven.
3The court awarded Rs. 3.90 lakh compensation based on this notional wage and other heads.

The Legal Issue The Karnataka High Court addressed the issue of determining compensation in a motor accident case where the claimant's actual income was not proven. The specific question was whether the notional monthly wage prescribed by a Central Government notification under the Employees Compensation Act, 1923, could be applied for calculating compensation under the Motor Vehicles Act, 1988.

Court's Reasoning Justice Hanchate Sanjeevkumar of the Karnataka High Court held that the Central Government's notification dated 29.05.2018, which specifies a notional monthly wage of Rs. 15,000 under Section 4(1)(b) of the Employees Compensation Act, 1923, is indeed applicable for calculating compensation in motor accident cases. The court reasoned that in the absence of concrete proof of income, this statutory notional wage provides a reasonable basis for assessing loss of earning capacity. The court applied this notional wage to calculate the compensation, considering other factors such as medical expenses, pain and suffering, and loss of amenities.

What Follows The Karnataka High Court granted a total compensation of Rs. 3.90 lakh to the claimant. This amount includes compensation based on the notional monthly wage of Rs. 15,000. The judgment directs the concerned parties to disburse the awarded compensation to the claimant.