Search By Topic: Compensation in Motor Accident Cases

151. (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)

160. (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)

169. (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)

170. (P&H HC) 17-09-2020

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Perks and allowance of employee -- Perks and allowances payable to the deceased employee benefiting him/his family members have to be included in computation of his monthly income and amounts deducted on account of HRA, CCA, Medical Allowance, EPF, GIS, LIC, re-payment of loan etc. are not liable to be excluded in such computation of his monthly income -- Tribunal was required to make statutory deduction of income tax from gross salary of the deceased for assessment of his income.

(Para 12)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Deceased had total annual income of Rs.4,21,668/- -- As per rates of personal income tax, no income tax was payable on income upto Rs.2,50,000/- -- Rebate upto Rs.1,50,000/- was permissible u/s 80C of the Income Tax Act -- After such rebate income tax of Rs.2,200/- at the rate of 10% on rounded off taxable income of Rs.22,000/- was payable but in view of Section 87 of the Income Tax Act, rebate of Rs.5,000/- was admissible in case of taxable income being less than Rs.5,00,000/- -- Therefore, no income tax was payable and the Tribunal did not commit any error in not making any deduction from income of the deceased towards income tax.

(Para 12)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Deceased Government employee – Future prospects – Deduction for dependency -- Deceased aged 53 years at the time of his death -- Since, the deceased was permanent Government employee addition of 15% to the income of the deceased towards future prospects -- Dependents on the deceased being two (claimants widow and son) 1/3rd of the income of the deceased was required to be deducted.

(Para 13, 14)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Split multiplier -- Deceased being aged 53 years would have retired after seven years on attaining the age of 60 years -- In view of the observations made by Hon’ble Supreme Court in Puttamma’s case 2014(1) RCR (Civil) 443 there cannot be any application of split multiplier of 7 and 4 to split income of deceased as assessed for 7 years and half of the same for 4 years -- Multiplier of 11 has to be applied to income of the deceased at the time of his death as assessed.

(Para 15)

E. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Pensionary Benefits – Deduction of -- Pension payable to widow of the deceased is not liable to be deducted from the amount of compensation payable -- Similarly, any ex gratia amount paid by the employer to widow of the deceased is not deductible -- Deceased was employed in Delhi Development Authority – D.D.A. has not enacted any rules similar to Haryana 2006 Rules extending compassionate financial assistance to the dependents of its deceased employees by payment of sum equal to pay and allowances last drawn by the deceased employee – Widow getting amount of Rs.13,660/- per month as family pension from the department -- Observations made by Hon’ble Supreme Court (Shashi Sharma's Case Shashi Sharma and others, IV(2016) ACC 340; 2016(4) RCR (Civil) 569) in regarding deduction of the amount of compassionate financial assistance out of the amount of compensation were not applicable to the facts of the present case -- Tribunal wrongly deducted amount of Rs.26,67,168/- out of the compensation amount of Rs.35,56,069/- payable to the appellants/claimants.

(Para 17-22)

F. Error in judicial order – Disciplinary proceedings – Requirement of -- Our legal system acknowledges the fallibility of the judges and in view thereof provides for appeals and revisions – To err is human and no one is infallible -- A Judge who has not committed any error is yet to be born -- No action is required to be taken against any judicial officer for bona fide error -- Unless there are clear cut allegations of misconduct, extraneous influences, gratification of any kind etc., disciplinary proceedings are not to be initiated merely on the basis that a wrong order has been passed by the Judicial Officer -- Role of superior courts is like a friend, philosopher and guide of the subordinate judiciary and the approach of the superior courts has to be correctional -- No complaint or any other material to show that the findings were animated by any mala fides or extreneous considerations so as to warrant any reference for disciplinary proceedings against the learned Presiding Officer of the Tribunal on Administrative side.

(Para 23)

G. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – 7.5% rate of interest on compensation -- Tribunal directed the payment of compensation amount with interest at the rate of 7.5% per annum from the date of filing of the petition till realization of the whole amount -- Rate of inflation, change in economy, R.B.I.’s lending rate of interest, rate of interest allowed by Nationalized Banks on fixed deposit receipts and other relevant factors, direction by the Tribunal for payment of interest at the rate of 7.5% per annum cannot be said to be unjust/illegal.

(Para 24)

H. Error in judicial order – Prevention in re-occurring -- Sometimes erroneous orders with errors in fact or law are passed by judicial officers -- It will be appropriate that the Judicial Officers are periodically sensitized for preventing recurrence of errors committed by them and avoiding errors frequently committed by other Judicial Officers -- Chandigarh Judicial Academy, Chandigarh directed to periodically compile cases involving such erroneous orders passed by Judicial Officers by obtaining the requisite information from Registrar Vigilance or Registrar Judicial of High Court and the concerned District and Sessions Judges and point out the errors committed to the Judicial Officers during the Induction/Refresher Training Courses organized for them while making dedicated efforts of not disclosing the particulars of the concerned Judicial Officers and the cases involved, although it may not be possible to maintain absolute secrecy about the same in view of the reporting of judgments of this Court and uploading of the orders on the website of this Court as well as the concerned District Courts.

(Para 27)

175. (SC) 30-06-2020

Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Deceased 40 years old – Widow and three minor children dependent -- Assessment of notional income –Proceedings for 22 years -- Compensation with 12% interest p.a. -- Income of the deceased in 1984 was 750 Qatari Riyal p.m. -- Accident occurred on 18.11.1998, which is 15 years after he shifted to Doha – He was evidently doing fairly well, by taking an increment of 10% per annum from 1984 till 1998, the notional income of the deceased could be fixed at 2590 Qatari Riyal p.m., which can be rounded off to 2600 Qatari Riyal p.m. -- In 1998, 1 Qatari Riyal was equivalent to 12.41 INR, income of the deceased would work out to 2600 x 12.41 = Rs. 32,266 p.m. i.e. Rs. 3,87,192 p.a. -- 50% of the income of the deceased deducted towards personal expenses, since he was living in a foreign country – Future prospects @30% and multiplier of 15 given -- For loss of Estate, Rs. 15,000, Loss of Spouse Consortium Rs. 40,000, Parental Consortium: 40,000 x 3 = Rs. 1,20,000 and Funeral Expenses, Rs. 15,000/- awarded – Total compensation to be paid comes to be Rs. 39,65,125/- -- After deducting for 50% contributory negligence amount payable comes to Rs.19,82,563/- -- Since dependents have been pursuing legal proceedings for grant of compensation since past 22 years, interest @ 12% p.a. awarded from the date of filing the claim petition, till realisation.

(Para 3, 9-13)

179. (SC) 12-06-2020

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Motor vehicle accident case -- Deceased was aged 50 years 3 months – Dependency of -- Multiplier of 13 awarded by Tribunal, by recording a finding that the deceased was in the age group of 40 to 50 years, maintained by High Court – However, High Court reduced the future prospects at 15% from 30% -- Held, High Court has committed error in granting only 15% towards future prospects instead of 30% -- Award of Tribunal restored.

(Para 5-9)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Motor vehicle accident case -- Loss of Consortium -- Loss of love and affection – Besides loss of dependency compensation, Tribunal awarded Rs.1,00,000/- towards loss of consortium to wife, Rs.3,00,000/- for all the appellants i.e. wife and two sons towards loss of love and affection and Rs.20,000/- towards funeral expenses – High Court reduced amount payable to wife by Rs. 1 lac for love and affection and awarded Rs.1,00,000/- towards loss of consortium; Rs.2,00,000/- towards of love and affection to the children; Rs.25,000/- towards funeral expenses and Rs.20,000/- towards transportation of dead body -- Held, taking into account facts and circumstances of the case, such grant of Rs.1,00,000/- ought not have been reduced by the High Court – Compensation awarded by the Tribunal is just and reasonable and the same was interfered with by the High Court without any valid grounds, as such, Judgment of High Court set aside and award passed by the Tribunal restored.

(Para 3, 5-9)

188. (SC) 08-01-2020

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case -- Contributory negligence -- Three persons on motor cycle -- Motor cycle in which the deceased was travelling, was hit by the car from behind and that therefore it was clear that the accident was caused by the rash and negligent driving of the car – At the most it would make him guilty of being a party to the violation of the law – Such violation by itself, without anything more, cannot lead to a finding of contributory negligence, unless it is established that his very act of riding along with two others, contributed either to the accident or to the impact of the accident upon the victim -- Hence the reduction of 10% towards contributory negligence, is clearly unjustified and the same has to be set aside.

(Para 12-14, 29)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Assessment of income -- Deceased was aged 23 years at the time of the accident -- Employed in a proprietary concern on a monthly salary of Rs.9600/- -- Sole proprietor of the concern was examined and the salary certificate was marked -- Tribunal which had the benefit of recording the evidence and which consequently had the benefit of observing the demeanour of the witness, specifically recorded a finding that there was no reason to discard the testimony – High Court proceeded to take the minimum wages paid for the unskilled workers at the relevant point of time as the benchmark – Held, High Court ought not to have chosen a theoretical presumption relating to the minimum wages fixed for unskilled employment -- Interference made by the High Court with the findings of the Tribunal with regard to the monthly income of the deceased, was uncalled for -- Order of High Court set aside and award of the Tribunal restored.

(Para 15-18, 29)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Compensation in motor vehicle accident case – Deceased was 23 years old -- Dependent is aged 90 years – Multiplier for dependency -- Age of deceased is relevant – Tribunal applied the multiplier of 18, on the basis of the age of the deceased -- Munna Lal Jain’s case, JT 2015 (5) SC 1 is binding in a case of this nature -- High Court committed a serious error in applying the multiplier of 14 instead of 18 – Order of High Court set aside and award of the Tribunal restored.

(Para 19-29)

190. (P&H HC) 14-11-2019

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Package/comprehensive policy -- Vehicle was used for hire or reward in violation of policy conditions – Insurance Company’s liability to pay compensation to the claimants -- As per the policy, vehicle was insured for own damage as well as third party – Held, the insurance company cannot escape liability to pay compensation to the claimants -- At the same time, since the insured is guilty of violating the terms and conditions of the policy, the insurance company shall be entitle to have right of recovery against the insured after payment of compensation to the claimants. Balakrishnan’s case 2013 ACJ 199 relied.

(Para 7-9)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Death of student -- Deceased was 15 years and about 7 months old and was a student of 9th class -- Taking a clue from notification issued by the State of Haryana fixing minimum wage at the relevant time coupled with educational qualification of the deceased, income of deceased is assessed at Rs. 4800/- per month -- Claimants shall be entitle to addition in income for future prospects @ 40% -- Admissible multiplier and deduction for personal expenses is 18 and 50% respectively -- Loss of dependency is Rs. 7,25,760/- [4800 x12x18 + (40% thereof) – 50%)] – Expenses on funeral Rs.15,000/- and Loss of Estate Rs.15,000/- given – Payable with interest @ 7% per annum from the date of petition till realization, to mother of the deceased, to be invested in fixed deposit for a period of one year.

(Para 12-14)

197. (P&H HC) 06-05-2019

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Head on collision – Contributory negligence – Proof of -- FIR was registered on the very next day at the instance of PW-2 -- It was specifically recorded that the offending vehicle was coming on wrong side and hit the car from front -- Evidence produced by the claimants was not rebutted by the insurer -- In cases under the Act, onus of proof is not as strict as in criminal cases -- Claimants have to establish their case merely on the touchstone of preponderance of probabilities – Held, claimants have been able to prove the involvement of the offending vehicle and the fact that the accident was caused due to rash and negligent driving of the said vehicle.

(Para 10-12)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Driving license – Validity of -- Onus to prove – Onus to prove that the driving licence was not valid on the day of accident or there was a breach of terms and conditions of the insurance policy, is on the insurer.

(Para 14)

C. Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Motor vehicle accident compensation -- 73 year old Father – Dependency of -- Deceased was survived by widow, two minor children and old father aged 73 years -- The widow-PW-1 specifically stated in her deposition that age of her father-in-law is 73 years -- Considering the age of father, it cannot be held that father was not dependent upon the earnings of his son – 1/4thdeduction made for self-expenses upheld.

(Para 15)

D. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Deceased was 45 years 02 months and 05 days – Multiplier of -- He is to be considered as 45 years and not 46 years -- As the deceased was 45 years and not completed the 46, multiplier of '14' is applied.

(Para 17)

199. (SC) 14-02-2019

A. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case -- Standard of proof -- Preponderance of probability -- In motor accident claim cases, once the foundational fact, namely, the actual occurrence of the accident, has been established, then the Tribunal’s role would be to calculate the quantum of just compensation if the accident had taken place by reason of negligence of the driver of a motor vehicle and, while doing so, the Tribunal would not be strictly bound by the pleadings of the parties -- Standard of proof to be borne in mind must be of preponderance of probability and not the strict standard of proof beyond all reasonable doubt which is followed in criminal cases.

(Para 20)

B. Motor Vehicles Act, 1988 (59 of 1988), Section 166 -- Compensation in motor vehicle accident case – Witness – Non-examination of -- Inability of the witness to identify the age of the pillion rider cannot, per se, be a militating factor to discard his entire version -- Approach in examining the evidence in accident claim cases is not to find fault with non-examination of some “best” eye witness in the case but to analyse the evidence already on record to ascertain whether that is sufficient to answer the matters in issue on the touchstone of preponderance of probability -- Tribunal was right in accepting the claim of the appellants even without the deposition of the pillion rider, since the other evidence on record was good enough to prima facie establish the manner in which the accident had occurred and the identity of the parties involved in the accident.

(Para 30, 31)