Tag: Road Accident Compensation

Supreme Court Boosts Compensation: Sets Minimum Income for Accident Victims
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...
Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted
Supreme Court

Supreme Court: Insurance Can’t Deny Claim Based on Policy Clause When Vehicle Was Properly Registered & Permitted

Supreme Court Judgment Based on the policy's "Limitation as to Use" clause, the Supreme Court ruled that an insurance company cannot deny liability for a utility vehicle registered and permitted as a "contract carriage" to carry passengers. The clause applies only to goods carriages, and the insurer, having issued the policy with full knowledge of the vehicle's registration and permit, is bound to indemnify the owner for third-party claims. The "pay and recover" order was set aside. Facts Of The Case: The case originated from a tragic accident involving a utility vehicle, which led to the filing of five separate claim petitions before the Motor Accidents Claims Tribunal (MACT) by the legal representatives of the deceased. The owner of the vehicle, Shyam Lal, was the appellant b...
Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency
Supreme Court

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...
Supreme Court Upholds Higher Compensation for Loss of Income in Road Accident Claim
Supreme Court

Supreme Court Upholds Higher Compensation for Loss of Income in Road Accident Claim

The Supreme Court enhanced compensation for a road accident victim with 50% disability, revising multiple heads under the Motor Vehicles Act. It increased future income loss by applying a 40% future prospects multiplier and upheld medical expense reimbursement with additional allowances. The judgment reaffirmed principles from Pranay Sethi and Ramachandrappa, ensuring just compensation with 9% interest. Facts Of The Case: The case involves M. Seetharama, a 38-year-old man who suffered severe injuries in a road accident on 25.06.2015 when his bike collided with a rashly driven jeep. An FIR was registered against the jeep driver, confirming negligence. Seetharama sustained multiple fractures, including in his right femur, clavicle, tibia, and fibula, leading to vascular compromise and even...