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

8Sep

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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...

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, proof of negligence is not required for claiming compensation, as the provision operates on a structured formula basis. The Court emphasized that compensation must be computed as per the Second Schedule of the Act, excluding non-scheduled heads like loss of love and affection. It ruled that the deceased, being a third party to the offending vehicle, entitled the claimants to compensation, payable jointly and severally by the insurer of the offending vehicle. The judgment clarified that Section 163A has an overriding effect over other provisions of the Act, ensuring expedited compensation without fault liability adjudication. Facts Of The Case: On the night of November 15, 2006, Surender Singh was driving a tr...

Supreme Court Rejects Salary Cut: Widow, Kids, and Parents Get Full Compensation in Fatal Truck Accident Case”

The Supreme Court restored the Tribunal’s compensation award for the family of a deceased truck driver, rejecting the High Court’s reduction of income from ₹10,000 to ₹4,076 per month. Citing Ramachandrappa v. Royal Sundaram Alliance, it upheld ₹10,000 as justified wages for 2014. The Court also affirmed loss of consortium for children and parents under Somwati v. New India Assurance, stressing equitable apportionment. The judgment reinforces fair compensation principles in motor accident claims, emphasizing statutory and precedential rights of dependents. Facts Of The Case: The case involved a fatal motor accident where a truck driver, aged 28, was hit and killed by another negligently driven truck while he was boarding his parked vehicle. The deceased’s legal representatives—his wido...