Motor Accident Claims - Potential To Earn Can Be Considered To Determine Compensation If There Is No Evidence For Actual Income : Supreme Court
3 years, 3 months ago

Motor Accident Claims - Potential To Earn Can Be Considered To Determine Compensation If There Is No Evidence For Actual Income : Supreme Court

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The Supreme Court has held that even if there is no evidence on record of actual income, deceased person's potential to earn can be considered while considering insurance claims in motor accidents matter. The Motor Accidents Claims Tribunal, Ranchi in its judgement assessed the "future loss of income" of the deceased at Rs.20,000/month and on that basis arrived at a compensation figure of Rs. The impugned judgement held that: "this Court is of the opinion that without any evidence with regard to income and only on the basis of oral statement income of the deceased was considered by the learned Tribunal to the tune of Rs.20,000/- is not just and proper, though there no contrary evidence was brought by Insurance Company nor cross-examination has been done by the Insurance Company, but the learned Tribunal ought to have been very reasonable in granting compensation as the same cannot be bonanza rather the same must be just and fair compensation." Before the Supreme Court, the Respondent-Insurance Company argued that there was no documentary evidence produced on record to show that Rs.20,000/ month was the actual income of the deceased at the time of death.

History of this topic

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