Tag: Just Compensation

Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims

In a significant ruling on motor accident claims, the Supreme Court reinforced the principles from Pranay Sethi and Somwati. The Court established that the income of a deceased, even if not fully substantiated, cannot be assessed lower than the notional income of an unskilled labourer, with due consideration for annual increments. It upheld the application of standard multipliers, future prospects, and clarified that loss of consortium is payable to spouses, children, and dependent parents. Facts Of The Case: In a tragic accident on July 25, 2010, four friends from Bijapur on a pilgrimage to Shirdi lost their lives when their car was involved in a head-on collision with a rashly and negligently driven goods lorry on NH-13. The case concerns one of the deceased, a qualified pharmacist, wh...
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Supreme Court Enhances Compensation: Income Tax Returns Must Be Considered for Accident Claims
11Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Enhances Compensation: Income Tax Returns Must Be Considered for Accident Claims

The Supreme Court held that for motor accident compensation, the functional disability affecting earning capacity, not just medical disability, is determinative. Income tax returns must be reasonably considered unless proven fabricated. Just compensation includes actual medical expenses proven by vouchers and future medical needs, but future prospects are not awarded when the claimant can continue earning post-disability. Facts Of The Case: On April 9, 2007, the appellant, Anoop Maheshwari, was riding his motorbike when it was hit by a rashly and negligently driven truck. The accident resulted in Maheshwari suffering a severe injury, specifically a hemipelvectomy, which is the amputation of one leg along with a portion of the pelvic bone. The Motor Accidents Claims Tribunal established t...
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Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation
11Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...
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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...
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Supreme Court’s Key Ruling :Notional Income of an Engineering Student Should Be Higher
25Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court’s Key Ruling :Notional Income of an Engineering Student Should Be Higher

The Supreme Court modified the contributory negligence apportionment to 20% on the claimant, 50% on the car driver, and 30% on the bus driver. It enhanced compensation by revising the notional income calculation for an engineering student and reinstated attendant charges, emphasizing just compensation for 100% disability. Facts Of The Case: On January 7, 2017, the appellant, a 20-year-old engineering student, was riding a motorcycle with a friend on the pillion. A car ahead, driven by respondent no. 2, suddenly applied its brakes on the highway because the driver's pregnant wife felt a vomiting sensation. This caused the appellant to collide with the rear of the car and fall onto the road. Subsequently, a bus, insured by respondent no. 1, which was coming from behind, ran over the appell...
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Supreme Court Landmark Ruling: Skilled Worker Gets Higher Disability Compensation
22Jul By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Skilled Worker Gets Higher Disability Compensation

The Supreme Court upheld the claimant's appeal, enhancing compensation for permanent disability from 25% to 35% based on medical evidence, rejecting the Tribunal's unsupported reduction. It affirmed Rs. 6,000/month income for the skilled mason, applying future prospects and multiplier method. The Court emphasized expert medical opinion's primacy in disability assessment and awarded Rs. 7.19 lakh with interest, reinforcing just compensation principles under motor accident claims. Facts Of The Case: The appellant, Suresh Jatav, a skilled mason, suffered severe injuries in a motor vehicle accident on 12.08.2002 when a rashly driven bus collided with his auto-rickshaw. He sustained a compound fracture in his right fibula, requiring surgical intervention and hospitalization for six days, as w...
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Justice for Disabled Victim: Supreme Court Awards ₹12 Lakh Extra for Disabled Accident Victim’s Future Care”
21May By The Legal ChamberNo Comments
Supreme Court

Justice for Disabled Victim: Supreme Court Awards ₹12 Lakh Extra for Disabled Accident Victim’s Future Care”

The Supreme Court ruled that insurance companies cannot be compelled to provide non-monetary relief like prosthetic limbs or ongoing medical supervision to accident victims. Emphasizing indemnity principles, the Court held compensation must be monetary, calculating ₹12 lakh for future prosthetic/wheelchair needs. It overturned the High Court's directive for in-kind support, reaffirming insurers' liability is limited to pecuniary compensation under motor accident laws. The judgment clarifies that "just compensation" under Section 168 of the Motor Vehicles Act excludes imposing perpetual welfare obligations on insurers. Facts Of The Case: The case arose from a motor accident on 21.12.2008, where respondent Suraj Kumar, a 22-year-old tempo cleaner, suffered severe injuries...
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Supreme Court Rejects Salary Cut: Widow, Kids, and Parents Get Full Compensation in Fatal Truck Accident Case”
21May By The Legal ChamberNo Comments
Supreme Court

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...
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