Search By Topic: Compensation in Motor Accident Cases

101. (SC) 30-09-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166, 168 -- Compensation in motor vehicle accident case -- Just compensation – Interference by Appellate Court – Power of -- Compensation must be fair, reasonable and equitable -- Further, the determination of quantum is a fact-dependent exercise which must be liberal and not parsimonious -- It must be emphasized that compensation is a more comprehensive form of pecuniary relief which involves a broad-based approach unlike damages -- Tribunals under the Act have been granted reasonable flexibility in determining ‘just’ compensation and are not bound by any rigid arithmetic rules or strict evidentiary standards to compute loss unlike in the case of damages -- Hence, any interference by the Appellate Courts should ordinarily be allowed only when the compensation is ‘exorbitant’ or ‘arbitrary’.

(Para 11)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Whether tortious liability – Unlike tortious liability, which is chiefly concerned with making up for the past and reinstating a claimant to his original position, the compensation under the Act is concerned with providing stability and continuity in peoples’ lives in the future.

(Para 12)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Income from Business Ventures and Investments – Relevance of -- Documents on record, noticed that almost all business ventures were the result of the initiatives taken by the deceased, and he was actively involved in the day-to-day management of these entities -- Mere fact that the deceased’s share of ownership in these businesses ventures was transferred to the deceased’s minor children just before his death or to the dependents after his death is not a sufficient justification to conclude that the benefits of these businesses continue to accrue to his dependents – Deceased was actively involved in the day-to-day administration of these businesses -- Entire amount from the business ventures is treated as income -- Similarly, the amount earned from the bank interests and remaining investments must also be included as income.

(Para 17)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Income from House Property and Agricultural Land – Relevance of -- Bequeathed to his legal heirs on his death -- Whether the entire amount under ‘Income from House Property and Agricultural Land’ should be deducted or not – Held, appropriate approach is to determine the value of managerial skills along with any other factual considerations – Court deemed appropriate to award Rs 2,50,000/- as the amount for the Deceased’s managerial skills -- Said amount would also include the amount for the managerial skills in respect of the Deceased’s agricultural lands.

(Para 19-23)

E. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Income from Business Ventures and Investments – Income from House Property and Agricultural Land – Assessment of income:

-- Income from Business Ventures and Investments (FY 2000-2001 is Rs. 8,95,812/-, FY 2001-2002 is Rs. 10,31,091/-, FY 2002-2003 is Rs. 14,65,060/-,  FY 2003-2004 is Rs. 9,79,099/-) average of these amounts comes up to Rs. 10,92,765.50/-, which is rounded off to Rs 10,93,000/- and the same is awarded to the Appellants as loss of income.

-- Income from House Property and Agricultural Land (FY 2000-2001 is Rs. 6,90,396/-, FY 2001-2002 is Rs. 6,47,127/-, FY 2002-2003 is Rs. 6,14,329/-, FY 2003-2004 is Rs. 4,78,240/-)  average of these amounts comes up to Rs. 6,07,523/- -- Court deemed appropriate to award Rs 2,50,000/- as the amount for the Deceased’s managerial skills for it.

Total of two parts (Rs 10,93,000/- Rs 2,50,000/-) comes to Rs 13,43,000/- -- Forty per cent added towards future prospects, which would come to Rs 18,80,200/- -- After deducting one-fourth towards personal expenses the net amount comes to Rs 14,10,150/- per annum -- Applying the multiplier of 16, the total loss of dependency on account of the Deceased’s income is calculated at Rs 2,25,62,400/-, Funeral Expenses Rs 15,000/-, Loss of Estate            Rs 15,000/-, Loss of Spousal Consortium        Rs 40,000/-, Loss of Parental Consortium (Rs 40,000 x 2) = Rs 80,000/, Total compensation (1+2+3+4+5)   Rs 2,27,12,400/- -- Interest @  7.5% per annum shall be payable on the aforesaid amount from the date of filing the claim petition till the date of realization.

(Para 26)

105. (SC) 19-09-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Employment of deceased – Proof of -- Appellants/ claimants placed on record the Salary Certificate of the deceased (N.S.) showing a monthly salary at Rs.15,000/- p.m. -- Appellants examined a Clerk in Regent Strips Pvt. Ltd., who has proved the said Salary Certificate -- It would reveal that the deceased was working as Manager in the said company -- Deceased was a qualified person, passed M.A. History also pursuing his M. Phil. in History -- Salary Certificate being duly proved, Tribunal and the High Court have erred in not giving due weightage to the same -- Compensation to be paid considering his monthly income at Rs.15,000/- p.m.

(Para 9, 10)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Future prospects – Funeral expenses and loss of estate – Consortium -- Monthly income of deceased assessed at  Rs. 15,000/- p.m. – Deceased (N.S.) was aged 23 years on the date of accident, 40% added towards future prospects – 1/2 deducted towards personal expenses – Multiplier of 18 applied, compensation comes out to be Rs.22,68,000/- -- Under conventional head : Rs.30,000/- toward estate and funeral expenses, Rs. 1,60,000/- for loss of consortium (4 appellant/claimant) – Total compensation amounting to Rs. 24,58,000/- assessed – Enhanced compensation of Rs.13,61,000/- alongwith 6% interest p.a. to be paid to appellants within three months.

(Para 10, 11)

108. (P&H HC) 19-07-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Standard of proof -- Standard of proof in claim petitions filed under the Motor Vehicles Act, cannot be equated with that of criminal cases -- In criminal cases, the prosecution has to prove its case beyond reasonable doubt, whereas, in cases before the Motor Accidents Claimants Tribunal, the claimants are only required to prove their case on the touchstone of preponderance of probabilities.

(Para 7)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Delay in FIR – Eye-witness not accompanied injured to hospital – Effect of -- Injured did receive serious and multiple injuries in the accident in question -- Just because there happened to be some delay in naming the offending vehicle, and the eye-witness not accompanying the injured to the hospital, would not in any way raise a question mark about the authenticity of version given by the injured/claimant qua the involvement of the offending vehicle in the accident in question -- Delay, if any, cannot thus be a ground to suspect the involvement of the offending vehicle in the accident in question -- Injured/claimant received serious injuries for which he remained hospitalized for many months -- It is but natural that the injured/claimant would have been in a severe shock, on account of the serious injuries received including amputation of his right leg -- Hence, the delay if any in the registration of the FIR cannot be a ground to disbelieve the involvement of the offending vehicle in the accident in question.

(Para 7)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case -- Claim from Mediclaim policy – Compensation for medical expenses by MACT Tribunal -- Whether the Tribunal erred in granting compensation to the injured claimant qua the medical expenses incurred since he had also received money qua the same from his Mediclaim policy -- Compensation awarded under the Motor Vehicles Act is statutory in nature, whereas, under an insurance policy, it is akin to a contract between the insured and the insurer -- In an insurance policy, the insured contributes his own money, whereas, the amount of compensation received under the Motor Vehicles Act, on account of an injury received or death is not a result of any contribution made by the claimants -- Court found no error in the impugned award. Helen C. Rebello’s case 1998 AIR (SC) 3191 relied.

(Para 7)

111. (P&H HC) 12-05-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case -- Deceased driving Activa on wrong side – Pleadings – Requirement of -- Driver of the offending vehicle stepped into the witness box as RW1 and stated that the deceased was driving the Scooter on the wrong side -- However, except statement of the driver no other details as to where the deceased had tried to cross the slip road in a rash and negligent manner are forthcoming from the statement or from the pleadings -- Pleadings are totally bereft of any details which could even remotely show that the deceased was driving the Activa Scooter on the wrong side of the road – A conjoint reading of the statement of the eye-witness as well as of the driver leaves no manner of doubt that the accident had taken place because of the rash and negligent driving of respondent No.6 -- Argument raised by the appellant-Insurance Company, hence rejected.

(Para 6)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case -- Assessment of Income of deceased -- Income Tax Return – Non-examination of official of IT Department – Effect of -- Proceedings before the Tribunal are summary in nature and do not admit strict principles of law of evidence to be applied – Considering the scheme of the Act, which is a beneficial piece of legislation, the income-tax returns produced by the claimants ought not to be rejected merely because they have not been proved by some official from the Income Tax Department unless some serious doubts are raised qua the authenticity of the same – High Court finds no reason not to accept the income calculation of the deceased as adopted by the Tribunal.

(Para 7, 8)

113. (P&H HC) 26-04-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Proof of accident – Standard of proof -- Standard of proof cannot be kept at par with that of criminal cases where the prosecution has to prove its case beyond reasonable doubt -- MACT cases stand on a different footing since therein claimants are only required to prove their case on the touchstone of preponderance of probabilities -- It cannot be disputed that the deceased indeed died in a motor vehicular accident which finds due corroboration from the medical evidence as well -- Just because there was a delay on the part of eye-witness in getting his statement (PW2/A) recorded before the police, would not in any way raise a question mark about the authenticity of his version much less the involvement of the offending vehicle in the accident in question since he categorically deposed that he had left for Delhi after the accident in question and came back on 09.03.2013 (Accident 3.3.2013) -- Delay in making the statement is, therefore, satisfactorily explained.

(Para 8)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case -- Mechanical report against involvement of vehicle – Delay in custody of vehicle – Effect of -- Contention of the insurance company that the mechanical test report (Ex.R7) of the offending vehicle clearly established that it was not involved in the accident in question deserves to be discarded as the vehicle in question was taken into custody by the police after the statement of eye witness much after the accident in question -- Hence, the possibility of the offending vehicle having been sent to the workshop for repairs in the intervening period cannot be ruled out – Appeal by insurance company dismissed.

(Para 2, 8, 9)

114. (P&H HC) 21-04-2022

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Claim petition by siblings of the deceased – Maintainability of -- Appeal by claimants for enhancement -- Specific issue was framed before the Tribunal and the same was answered in favour of the claimants relying upon the law laid down by the Supreme Court in case of 'Hafizun Begum vs. Md. Ikram Haque & others', 2007(10) SCC 715 -- Neither of the respondents has preferred appeal -- Thus in view of settled proposition of law and the fact that the finding on the Issue has not been assailed, the objection w.r.t. maintainability of the petition at the hands of siblings of the deceased, sans merit -- Claim petition is held to be maintainable.

(Para 7)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Assessment of Income of deceased – Future prospects -- No evidence of income -- Minimum wages notified by State -- Deceased, aged 24 years was employed as a driver -- In the absence of cogent material on record, his income thus needs to be assessed as per the minimum wages notified by the State of Punjab as Rs.4375.00/- per month – Income enhanced to Rs.4375.00/- per month -- As per guidelines laid down in Pranay Sethi's case (2017) 16 SCC 680 further component of 40% on account of future prospects needs to be added.

(Para 8)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Bachelor/ Unmarried deceased – Deduction for personal expenses -- Keeping in view that the deceased was unmarried, deduction of ½ has been rightly applied by the Tribunal.

(Para 9)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Deceased aged 24 years – Multiplier -- Owing to the age of the deceased i.e. 24 years, multiplier applicable will be 18.

(Para 9)

E. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Conventional heads – Funeral expenses -- Loss of Estate -- Loss of consortium – Funeral expenses Rs.10,000/-, Rs.10,000/- for loss of estate and Rs.20,000/- for loss of consortium awarded.

(Para 9)

118. (P&H HC) 18-04-2022

Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Non-examination of driver – Adverse inference – Tribunal awarded compensation to claimants -- Sole argument of appellant-Insurance Company is that the accident never took place and a false claim had been filed in order to grab the compensation -- Not disputed that the deceased was taken to the hospital with the history of a road accident – Statements of RW-1 Dr. AK and RW-2 Dr. R would support the version put forth by the claimants and it has been deposed by both the witnesses that the deceased was brought to the hospital with a history of a road-side accident – Rider of the motorcycle/ respondent no. 7 while reporting the matter to the Police had got his statement recorded to the effect that the accident had taken place when a bull came on the road and struck into the motorcycle and the deceased received grievous injuries, which eventually proved fatal – Driver of the vehicle, respondent No.7, did not step into the witness box to rebut the evidence led by the claimants, since he chose not to step into the witness box, an adverse influence was drawn against him -- It is well settled that in such like cases the claimants are merely to establish their case on the touchstone of preponderance of probability and standard of proof beyond reasonable doubt cannot be applied while dealing with the motor accident cases -- Approach of the Tribunal should be a holistic analysis of the entire pleadings and evidence by applying the principles of preponderance of probability, which stands satisfied in the present case -- Appeal by Insurance company dismissed.

(Para 8-13)

122. (SC) 27-10-2021

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Claimant doing Jewelry work -- 69% permanent disability – Loss of earning capacity – Expenses for bystander -- Future Medical Expenses -- Impact on the earning capacity for the claimant by virtue of his 69% disability must not be measured as a proportionate loss of his earning capacity -- Earning life for the appellant is over and as such his income loss has to be quantified as 100% -- There is no other way to assess the earning loss since the appellant is incapacitated for life and is confined to home -- In such circumstances, his loss of earning capacity must be fixed at 100% -- As his monthly income was Rs.4,500/-, adding 40% future prospect thereto, the monthly loss of earning is quantified as Rs.6,300/- -- Compensation quantify at Rs.13,60,800/- (Rs.6,300 x 12 x 18) for 100% loss of earning for the claimant – Loss of 6 month hospitalization also corrected as Rs.27,000/- (Rs.4,500 x 6) -- Expense for bystander assessed Rs.10,80,000/- -- Future Medical Expenses Rs.3,00,000/- -- Total compensation Rs.27,67,800/-

(Para 3, 16-18)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case -- Permanent disability – Just compensation -- Tribunal and the Courts must be conscious of the fact that the permanent disability suffered by the individual not only impairs his cognitive abilities and his physical facilities but there are multiple other non-quantifiable implications for the victim -- The very fact that a healthy person turns into an invalid, being deprived of normal companionship, and incapable of leading a productive life, makes one suffer the loss of self-dignity -- Such a Claimant must not be viewed as a modern day Oliver Twist, having to make entreaties as the boy in the orphanage in Charles Dickens’s classic, “Please Sir, I want some more” -- Efforts must be to substantially ameliorate the misery of the claimant and recognize his actual needs by accounting for the ground realities -- While the money awarded by Courts can hardly redress the actual sufferings of the injured victim (who is deprived of the normal amenities of life and suffers the unease of being a burden on others), the courts can make a genuine attempt to help restore the self-dignity of such claimant, by awarding ‘just compensation’.

(Para 19)

125. (P&H HC) 06-09-2021

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Assessment of income – Income Tax Return -- It is only on the basis of the said ITR that the income of the deceased and the consequent loss of dependency to the claimants, has been assessed by the Tribunal -- If the insurance company had any proof that before this year the deceased, who was self-employed, was not earning this much of money, then the insurance company was free to lead anything in evidence to that effect -- It is the income of the deceased which he was earning at the time of the death, which is the basis for calculation and grant of the compensation to the dependants; and any earlier lesser income would be totally irrelevant -- Hence, Court did not find any illegality in the findings recorded by the Tribunal; in this regard.

(Para 7)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Territorial jurisdiction of MACT case - Accident at Rajasthan – Claim petition at Gurugram -- Territorial jurisdiction for claiming compensation for motor accident is not tagged to any particular place.

(Para 6, 8)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Registration of FIR – Requirement of -- Even if there had been no FIR registered in the matter, that would not have disentitled the claimants from compensation on account of death of deceased in the accident.

(Para 8)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Non-involvement of insured vehicle in accident – Plea of -- If the insurance company intended to rebut the evidence led by the claimants on this aspect, then the insurance company should have led positive evidence in this regard – Despite taking a specific plea in the written statement that the vehicle insured by the appellant was not involved in the accident, the insurance company has not led any evidence to support this assertion made in the written statement -- Hence, their pleadings have gone totally unsubstantiated -- Appeal dismissed.

(Para 8)

132. (P&H HC) 06-07-2021

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Daily diary report – Evidential value --Contends that as per daily dairy report, the accident took place as a stray dog suddenly came on the road and therefore, the driver of the vehicle cannot be said to be negligent – Held, daily dairy report was entered on the statement of respondent No.6, who was, at the relevant time, driving the motorcycle he cannot be expected to admit his negligence – In support of the claim petition, eyewitness has appeared before the Court to depose, he has been thoroughly cross examined by putting searching questions -- His deposition has been found creditable by the Tribunal -- Hence, the contention is without substance.

(Para 4-6)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Pleadings of negligence – Requirement of -- Contention that deceased was not wearing helmet while riding on the pillion of a motorcycle, hence amount payable by the insurer is liable to be reduced on account of contributory negligence of the deceased – Held, Insurance company has neither laid any foundation in the pleadings nor led evidence in support thereof -- Insurance company while filing the written statement did not plead that deceased was not wearing the helmet -- Still further, the insurance company did not lead any evidence to prove this fact and also failed to raise this point before the Tribunal -- Still further, insurance company has failed to draw the attention of the Court to the cross examination of eye-witness on this aspect -- In such circumstances, the argument of insurance company do not deserve acceptance.

(Para 4, 7)

141. (SC) 08-12-2020

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Indian Evidence Act, 1872 (1 of 1872), Section 137, 139, 145  -- Compensation in motor vehicle accident case -- FIR author not examined – Non-reporting of accident to police by eye-witness -- Adverse inference -- Eye witness (AW-3) accompanied deceased to hospital in his car -- It is quite natural that such a person who had accompanied the injured to the hospital for immediate medical aid, could not have simultaneously gone to the police station to lodge the FIR -- High Court ought not to have drawn any adverse inference against the witness for his failure to report the matter to Police -- Failure of the respondents to cross examine the solitary eye-witness or confront him with their version, despite adequate opportunity, must lead to an inference of tacit admission on their part -- They did not even suggest the witness that he was siding with the claimants -- High Court has failed to appreciate the legal effect of this absence of cross-examination of a crucial witness -- Statement of AW-3 does not suffer from any evil of suspicion and is worthy of reliance -- Tribunal rightly relied upon his statement and decided in favour of the claimants.

(Para 17-24)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Principle of evidence -- Strict principles of evidence and standards of proof like in a criminal trial are inapplicable in MACT claim cases -- Standard of proof in such like matters is one of preponderance of probabilities, rather than beyond reasonable doubt -- One needs to be mindful that the approach and role of Courts while examining evidence in accident claim cases ought not to be to find fault with non-examination of some best eye-witnesses, as may happen in a criminal trial; but, instead should be only to analyze the material placed on record by the parties to ascertain whether the claimant’s version is more likely than not true.

(Para 22)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Indian Evidence Act, 1872 (1 of 1872), Section 101, 102 -- Compensation in motor vehicle accident case -- Burdon of proof -- Rash and negligent driving by other vehicle – Defence of – Non-examination as witness – Effect of -- Adverse inference -- If the owner-cum-driver of the car were setting up a defence plea that the accident was a result of not his but the other vehicle driver’s carelessness or rashness, then the onus was on him to step into the witness box and explain as to how the accident had taken place -- Fact that he chose not to depose in support of what he has pleaded in his written statement, further suggests that he was himself at fault -- High Court, therefore, ought not to have shifted the burden of proof.

(Para 23)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case -- Future prospects -- Deceased was 34 year old – Appellants are held entitled to compensation as awarded by the Tribunal, besides 40% addition in the annual income of the deceased towards ‘future prospects’ -- Motor Accident Claims Tribunal, is directed to recalculate the compensation amount accordingly -- Appellants are held entitled to interest @ 8.5%, as per the Tribunal’s award, on the entire amount of compensation.

(Para 4, 26)

150. (SC) 17-09-2020

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166, 173 -- Victims’ appeal – Insurance company’s contention on merit – Right of –

-- Insurance company has not come up in appeal questioning the High Court’s finding on the heads of compensation and quantum of compensation -- These submissions of the insurance company cannot entertain at this stage.

-- Forum of first instance or the High Court did not return any finding on the first appellant being under influence of alcohol – Insurance company not permitted to raise this plea at this stage.

(Para 6)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166, 173 – Compensation in motor vehicle accident case -- Permanent disability -- 50% disability assessed at Tribunal stage -- 100% assessed at High Court stage – Victim in Coma – Future prospects – No deduction for personal expenses -- Appellant survived though at present in almost “coma stage” – Contention for deduction towards personal living expenses rejected – Assessment of Rs.3500/- as monthly income affirmed -- 40% awarded for loss of future prospects -- Compensation for permanent disability and loss of future earning comes to Rs.9,40,800, Rs.7 lacs for medical attendant (Bystander) charges and further treatment cost, Rs.3 lacs for pain and suffering, Rs. 1500/- for extra nourishment, Rs. 10,000/- for loss of amenities alongwith Rs. 68,000/- as expenses for medicines and treatment, Rs.6,000/- as transportation charges and Rs.500/- as damage to clothing awarded – 9% interest from the date of filing claim petition u/s 166 also awarded.

(Para 4-10)