[MOTOR ACCIDENT COMPENSATION] FUTURE RISE IN INCOME APPLICABLE EVEN IF DECEASED WASN'T EARNING AT TIME OF DEATH: SUPREME COURT The Supreme Court on Thursday held that future rise in income should be considered while determining future income for calculating compensation in motor accident claims, even with respect to a deceased who was not earning, working or self-employed at the time of death (Smt. Meena Pawaia vs. Ashraf Ali). A Bench of Justices MR Shah and Sanjiv Khanna placed reliance on an earlier judgment of the top court in National Insurance Company v. Pranay Sethi to hold that legal heirs of a deceased will be entitled to future prospects by 40 percent future rise in income if the deceased was below 40 years of age, even if the deceased was not earning any income at the time of his death. • After his death, the mother, father, brother and sister of the deceased filed a claim-petition before the Motor Accidents Claims Tribunal (MACT) for ₹25 lakh compensation. However, the MACT in toto awarded ₹12, 85, 000 with 7.5 per cent interest per annum. • When the aggrieved claimants appealed against the same before the Madhya Pradesh High Court, the amount was reduced to ₹6, 10, 000 assessing the income of the deceased at ₹5, 000 per month. • Dissatisfied with order of the High Court, the claimants approached the apex court. It is not expected that if a deceased who was not serving at all, his income is likely to remain static and stagnant forever, the Court added. Therefore, the Court directed that the claimants shall be entitled to a sum of ₹15, 82, 000 with interest at the rate of 7 per cent per annum. Reddy & amp; Reddy Law Firm is having team of advocates and will help you in all MACT Disputes.