Tag: Motor Accident Claim

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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Merely Producing a Licence is Not Collusion, Rules Supreme Court, Protecting Owners from Insurer’s Recovery
24Dec By The Legal ChamberNo Comments
Supreme Court

Merely Producing a Licence is Not Collusion, Rules Supreme Court, Protecting Owners from Insurer’s Recovery

The Supreme Court held that merely proving a driver’s licence is fake does not absolve the insurer unless it is established that the vehicle owner knowingly breached the duty of due diligence in employing the driver. Absent proof of such breach, the insurer remains liable to third parties and cannot recover from the owner under a “pay and recover” order. Facts Of The Case: The accident occurred on January 26, 1993, at 2:00 AM at an intersection, involving a collision between a truck and a Matador van. The Matador van was carrying ten passengers, including the driver. Tragically, nine persons lost their lives in the accident, while two sustained injuries. Claims were filed before the Motor Accident Claims Tribunal by the injured and the legal heirs of the deceased passengers, as wel...
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Fraud in Insurance Policy: Supreme Court’s Balanced Approach in Accident Compensation Case
25Nov By The Legal ChamberNo Comments
Supreme Court

Fraud in Insurance Policy: Supreme Court’s Balanced Approach in Accident Compensation Case

The Supreme Court upheld the liability of the Insurance Company to pay compensation to the accident claimants. However, upon finding the insurance policy was fraudulently manipulated and not valid on the accident date, the Court granted the insurer the right to recover 50% of the compensation amount from the vehicle owner and driver. Facts Of The Case: The case arose from a fatal road accident on June 21, 2006, which resulted in the death of a 21-year-old security guard, Hem Singh Mehta. The accident occurred when a truck, driven rashly and negligently, hit the deceased while he was waiting for a bus. The legal heirs of the deceased filed a claim before the Motor Accident Claims Tribunal in Haldwani. The Tribunal, after establishing that the accident was caused by the truck driver's negl...
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Supreme Court Landmark Ruling: Income for Accident Claim Not Capped by Workmen’s Compensation Act
25Nov By The Legal ChamberNo Comments
Supreme Court

Supreme Court Landmark Ruling: Income for Accident Claim Not Capped by Workmen’s Compensation Act

The Supreme Court held that in a claim petition under Section 166 of the Motor Vehicles Act, 1988, the Tribunal must assess compensation based on the Act's principles. It is impermissible to apply the income ceiling from the Workmen's Compensation Act, 1923, once the claimant has elected the remedy under the M.V. Act. Facts Of The Case: The appellant, a 23-year-old lorry loader, suffered grievous injuries in a vehicular accident on 1st December 2015, which resulted in the amputation of his right leg below the knee. He filed a claim petition before the Motor Accident Claims Tribunal seeking compensation. The Tribunal, assessing his monthly income at Rs. 9,000, awarded a total compensation of Rs. 19,35,400, which included a significant component for future loss of income. On appeal by ...
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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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Pay and Recover Not Allowed: Supreme Court Shields Insurer in Goods Vehicle Passenger Death Case
22Nov By The Legal ChamberNo Comments
Supreme Court

Pay and Recover Not Allowed: Supreme Court Shields Insurer in Goods Vehicle Passenger Death Case

This Supreme Court judgment reaffirms that an insurance company is not liable to indemnify for accidents involving fare-paying passengers in a goods vehicle, as it constitutes a fundamental breach of policy terms. The Supreme Court declined to apply the "pay and recover" principle in such scenarios, absolving the insurer of the liability to pay compensation. Facts Of The Case: The case originated from a fatal accident where the deceased was a passenger traveling in a three-wheeler goods vehicle after paying a fare. The legal heirs of the deceased (the petitioners) filed a claim before the Motor Accidents Claims Tribunal. The Tribunal awarded compensation and directed the insurer, HDFC Ergo, to pay the amount, dismissing its contention that covering a fare-paying passenger in a goods vehi...
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Tribunal’s Income Assessment Upheld: Supreme Court Partially Allows Appeal in Injury Claim Case
22Nov By The Legal ChamberNo Comments
Supreme Court

Tribunal’s Income Assessment Upheld: Supreme Court Partially Allows Appeal in Injury Claim Case

The Supreme Court partially restored the Tribunal's compensation award, upholding the adopted monthly income and modifying attendant charges. It clarified that in the absence of a cross-appeal by the claimant, enhancement beyond the Tribunal's award or addition of future prospects cannot be claimed against the insurer's appeal. Facts Of The Case: On January 5, 2013, the appellant, Ramar, was standing by the side of the road when a rashly and negligently driven lorry hit him. The accident resulted in grievous injuries, leading to the amputation of his right leg from the thigh and a crush injury to his left leg, which paralyzed it. Medical evidence presented before the Tribunal, including the testimony of treating doctors and hospital records, proved the nature of the injuries and as...
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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 Judgment: Key Takeaway from Vanita vs. Shriram Insurance Co. Ltd.
9Oct By The Legal ChamberNo Comments
Supreme Court

Supreme Court Judgment: Key Takeaway from Vanita vs. Shriram Insurance Co. Ltd.

The Supreme Court dismissed the civil appeal, thereby upholding the decision of the lower courts. The ruling signifies that the appellants' legal challenge against the insurance company's position was not tenable in law. The court found no merit to interfere, allowing the impugned judgment and the terms of the insurance policy to stand. Facts Of The Case: The case originated from a claim filed by Vanita and others, likely the legal heirs of a deceased, seeking compensation under a motor accident claim. The accident presumably involved a vehicle insured with M/s Shriram Insurance Company Ltd. The Motor Accidents Claims Tribunal (MACT) initially ruled in the case, and its decision was subsequently challenged in a High Court. It appears that the claimants' appeal was unsuccessful in the Hig...
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