Tag: insurance company

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...
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Supreme Court Interprets New MV Act Law: Injury Claims Survive to Legal Heirs
25Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Interprets New MV Act Law: Injury Claims Survive to Legal Heirs

This Supreme Court judgment clarifies that under Section 167(5) of the Motor Vehicles Act, 1988, inserted by Act 32 of 2019, the right to claim compensation for personal injuries survives to the legal representatives of an injured person upon their death. This survival of the cause of action is applicable irrespective of whether the death has any nexus to the accident injuries. The Court thus overruled the contrary view taken in Bhagwati Bai. Facts Of The Case: The case originated from a motor accident in which the original claimant, Dhannalal, suffered injuries that resulted in 100% disability. He initially filed for compensation before the Motor Accidents Claims Tribunal. Dissatisfied with the awarded amount, he appealed to the High Court, which enhanced the compensation. Still see...
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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...
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Supreme Court Upholds 25% Future Prospects, Awards Consortium to All Children in Accident Case
22Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds 25% Future Prospects, Awards Consortium to All Children in Accident Case

The Supreme Court enhanced compensation by determining the income of a deceased mason, a skilled labourer, without documentary proof, by applying judicial precedent and accounting for inflationary trends. It upheld the application of standard multipliers, future prospects, and conventional heads as per established principles in motor accident claim jurisprudence. Facts Of The Case: The case arose from a motor accident that resulted in the death of the sole breadwinner of a family. The deceased, a 43-year-old mason, was claimed by the appellants (his wife and three minor children) to have been earning an income of ₹400 per day. However, as there was no documentary proof of his earnings, the Motor Accidents Claims Tribunal adopted a lower daily wage of ₹189, a figure which was later confir...
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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...
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