claimants - The Legal Chamber

Supreme Court Ends Confusion, Sets Uniform Rule for Accident Payouts

20Jan

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Ends Confusion, Sets Uniform Rule for Accident Payouts

The Supreme Court held that the application of a "split multiplier" in motor accident compensation cases is impermissible. Relying on the structured formula from Sarla Verma and Pranay Sethi, the Court ruled that compensation must be calculated using a single multiplier based solely on the victim's age, as superannuation does not constitute an exceptional circumstance justifying a deviation from this settled method. Facts Of The Case: On 3rd August 2012, T.I. Krishnan, aged 51, died in a road accident on the Pala-Thodupuzha Road when his car was hit by a rashly driven bus. His surviving family—his wife and children—filed a claim petition before the Motor Accidents Claims Tribunal (MACT), Pala, seeking compensation. The Tribunal, in April 2014, awarded approximately ₹44 lakhs, determining...

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation

31Dec

By The Legal ChamberNo Comments

Supreme Court

Supreme Court Boosts Accident Compensation: Key Takeaways on Salary & Tax Calculation

The Supreme Court clarified that for computing compensation in motor accident claims, the deceased's income includes all allowances, regardless of taxability. Future prospects for a permanent employee below 40 are to be added at 50%. Income tax deduction, if applicable, must be calculated as per the actual tax slab rates for the relevant year. Facts Of The Case: The case originated from a motor accident claim filed by the dependents of a 27-year-old engineer employed with the Power Grid Corporation of India, who died in an accident. The Motor Accident Claims Tribunal awarded compensation of approximately ₹88.20 lakhs. This computation included his full monthly salary of ₹53,367 (comprising basic pay, DA, and other allowances), applied a multiplier of 18, added 50% for future prospe...

Inconsistent Evidence Leads to Claim Rejection, Rules Supreme Court in Reliance Insurance Case

22Nov

By The Legal ChamberNo Comments

Supreme Court

Inconsistent Evidence Leads to Claim Rejection, Rules Supreme Court in Reliance Insurance Case

The Supreme Court upheld the High Court's decision, emphasizing that a claim petition under motor accident law must be established on a preponderance of probability. However, this standard is not met when the foundational evidence, including the FIR and eyewitness testimony, is found to be unreliable, unsubstantiated, and creates valid suspicion regarding the occurrence of the accident itself. Facts Of The Case: On June 18, 2014, the deceased, husband of the first appellant, was allegedly involved in a hit-and-run road accident at Singasandra crossroad. The accident was claimed to be witnessed by PW2, a neighbour, who testified that the driver of the offending vehicle abandoned the victim's body after promising to take him to a hospital. The wife of the deceased (PW1) was informed by P...

Proximity Not Proof: Supreme Court on Accident Injury and Death Five Months Later

11Oct

By The Legal ChamberNo Comments

Supreme Court

Proximity Not Proof: Supreme Court on Accident Injury and Death Five Months Later

The Supreme Court dismissed the appeal, upholding the High Court's finding that the death was not a direct consequence of the motor accident injuries. The legal requirement of establishing a direct causal nexus between the accident and the death was not satisfied, as the medical evidence indicated the fatality was a possible after-effect of the surgery and the victim's pre-existing conditions, not the injuries themselves. Facts Of The Case: On April 29, 2006, an Excise Guard died following injuries sustained in a motorcycle accident. The accident occurred when the motorcycle he was riding collided with another motorcycle. He was initially hospitalized from April 29 to May 3, 2006, for injuries including a compound fracture of multiple metatarsals in his right foot and a fracture in his l...

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

8Sep

By The Legal ChamberNo Comments

Supreme Court

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

This Supreme Court judgment clarifies that allowances forming part of a deceased's salary, if used for family support, must be included in income computation for motor accident compensation. It applies established principles from Sarla Verma and Pranay Sethi to include future prospects and awards consortium as per Magma General Insurance, ensuring just compensation under the Motor Vehicles Act. Facts Of The Case: On February 16, 2009, Lokender Kumar died in a motor accident caused by the rash and negligent driving of a Santro car on the Sohna-Gurgaon Road. His widow and two minor children filed a claim petition before the Motor Accident Claims Tribunal in Gurgaon, seeking Rs. 25 lakhs in compensation. The Tribunal, considering his basic salary of Rs. 3,665 per month and applying a multip...