Courts and tribunals have to be alive to changing situations in awarding compensation in road accident cases: HC
2 years, 5 months ago

Courts and tribunals have to be alive to changing situations in awarding compensation in road accident cases: HC

The Hindu  

Observing that the courts and the tribunals will have to be alive to changing situations in awarding compensation in road accident cases, the High Court of Karnataka has said that it would result in grave injustice if notional income is calculated based on the parameters existed in 1992 to award compensation for the death occurred in 2013. Cost of living, inflation Disagreeing with computation of loss of dependency and future income based on notional income considered by the apex court while awarding compensation way back in 1992, Justice Hegde pointed out that the cost of living, inflation and erosion in the value of the rupee and consequent revision in wages post 1992 and the present scenario will have to be considered while determining the compensation. Compensation awarded by taking grossly inadequate notional income cannot be termed as compensation in its truest sense of the word,” the High Court said. The High Court has calculated the notional income as ₹1.1 lakh per annum by taking into various parameters for the purpose of awarding compensation.

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History of this topic

“There Has Been An Increase In Inflation:" J&K High Court Emphasises Revising 'Notional Income' Under Second Schedule Of Motor Vehicles Act
2 weeks, 5 days ago

“There Has Been An Increase In Inflation:" J&K High Court Emphasises Revising 'Notional Income' Under Second Schedule Of Motor Vehicles Act

Live Law  

Recognising the impact of inflation and the devaluation of currency over the years the Jammu and Kashmir and Ladakh High Court has emphasised the need to revise the notional income of non-earning persons as stipulated in the Second Schedule of the Motor Vehicles Act, 1988. The court reasoned, “The income of a non-earning person, as specified in the Second Schedule, …

Notional Income Of Ordinary Worker Must Be Determined Based On Fair Wages At Time Of Awarding Compensation: Kerala High Court
1 month, 4 weeks ago

Notional Income Of Ordinary Worker Must Be Determined Based On Fair Wages At Time Of Awarding Compensation: Kerala High Court

Live Law  

The Kerala High Court has observed that the notional income of an ordinary worker has to be fixed after considering the fair wages applicable at the time of calculating the compensation and not based on his earning capacity at the time of the accident. Justice Johnson John stated that earning less than fair wages at the time of the accident …

Income Tax Return Is Statutory Document, Holds Precedence Over Salary Certificate When Determining Compensation Under MV Act: Rajasthan HC
1 month, 4 weeks ago

Income Tax Return Is Statutory Document, Holds Precedence Over Salary Certificate When Determining Compensation Under MV Act: Rajasthan HC

Live Law  

Rajasthan High Court has affirmed that if there are two documents for ascertaining the income of the deceased including a salary certificate from his/her employer and his/her Income Tax Returns, the latter shall be considered by the Court since these are statutory documents signed by the deceased himself/herself. It was submitted that as per the salary certificate provided by the …

Motor Accident Claims | Arrears Cannot Be Included In Calculation Of Salary For The Purpose Of Compensation: Bombay High Court
1 year ago

Motor Accident Claims | Arrears Cannot Be Included In Calculation Of Salary For The Purpose Of Compensation: Bombay High Court

Live Law  

The Bombay High Court recently held that arrears cannot be considered while calculating a person's salary for the purpose of compensation for a motor accident. Justice Shivkumar Dige, while upholding enhancement of compensation to the family of a deceased in an accident, deducted the amount of arrears mentioned in his salary slip while calculating monthly income. The court was dealing …

Advocate's Movement Between Courts Affected By Lower Limb Disability, Impacts Income: Karnataka HC Enhances Motor Accident Compensation
1 year, 3 months ago

Advocate's Movement Between Courts Affected By Lower Limb Disability, Impacts Income: Karnataka HC Enhances Motor Accident Compensation

Live Law  

The Karnataka High Court has enhanced the compensation awarded to an advocate by the Motor Accidents Claim Tribunal, stating that the disability of lower limb certainly hinders her ability to efficiently serve clients and move quickly between courts, potentially impacting her income and professional responsibilities. The Karnataka Government Insurance Department opposed the plea and sought a reduction in the compensation …

Delhi High Court Awards Over ₹65 Lakh Enhanced Compensation To Road Accident Victim With 100% Functional Disability; Total ₹1.12 Crore
1 year, 8 months ago

Delhi High Court Awards Over ₹65 Lakh Enhanced Compensation To Road Accident Victim With 100% Functional Disability; Total ₹1.12 Crore

Live Law  

The Delhi High Court has awarded over Rs. 65 lakh enhanced compensation to a woman who met with a motor-vehicular accident in 2011 when she was an 11-year-old school going girl. The court was hearing two appeals moved by Jyoti Singh as well as the ICICI Lombard General Insurance Corporation Limited challenging the compensation awarded by the MACT in 2011. …

Motor Accident Tribunal Should Grant ₹1 Lakh Compensation For Upto 10% Permanent Disability Suffered By Minor: Gujarat High Court Reiterates
1 year, 11 months ago

Motor Accident Tribunal Should Grant ₹1 Lakh Compensation For Upto 10% Permanent Disability Suffered By Minor: Gujarat High Court Reiterates

Live Law  

The Gujarat High Court recently modified the judgment and award granted by the Motor Accident Claims Tribunal on the ground that the tribunal had not complied with the directions issued by the Supreme Court, prescribing Rs. 1 lakh compensation for a minor who sustains upto 10% permanent disability in a motor accident. Dwivedi submitted that the said award granted by …

Motor Accident Death | Compensation Must Balance Fiscal Conditions Of Country Where Deceased Earned & Place Where Kin Live: Gujarat High Court
2 years, 4 months ago

Motor Accident Death | Compensation Must Balance Fiscal Conditions Of Country Where Deceased Earned & Place Where Kin Live: Gujarat High Court

Live Law  

The Gujarat High Court recently enhanced the compensation granted by the Motor Accident Claims Tribunal to the kin of a deceased victim, who was earning in foreign currency prior to his death.The Bench comprising Justices AJ Desai and Mauna Bhatt relied on Supreme Court's decision in United India Insurance Co. Ltd. & ors. The Gujarat High Court recently enhanced the …

Motor Accident Compensation: Claimant Entitled To Future Loss Of Income Proportionate To Extent Of Disability Though There Is No Total Loss Of Income - Bombay High Court
2 years, 11 months ago

Motor Accident Compensation: Claimant Entitled To Future Loss Of Income Proportionate To Extent Of Disability Though There Is No Total Loss Of Income - Bombay High Court

Live Law  

The Bombay High Court observed that while determining the compensation that the applicant would be entitled to on account of loss of future earnings, even if the applicant has not suffered total loss of income due to permanent disability. The Bombay High Court was hearing an appeal from an impugned judgement of the Motor Accidents Claims Tribunal, Palghar which had …

Motor Accident Claims - Potential To Earn Can Be Considered To Determine Compensation If There Is No Evidence For Actual Income : Supreme Court
3 years, 1 month ago

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

Live Law  

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 …

Sec 163A MV Act -Fixing Rs 15,000 Per Annum As Notional Income For Non-Earning Members Not Reasonable As Schedule II Not Yet Amended : Supreme Court
3 years, 1 month ago

Sec 163A MV Act -Fixing Rs 15,000 Per Annum As Notional Income For Non-Earning Members Not Reasonable As Schedule II Not Yet Amended : Supreme Court

Live Law  

While dealing with a civil appeal preferred by appellant claimants aggrieved by the High Court of Jharkhand, Ranchi's judgement the Supreme Court observed that despite repeated directions, Schedule-II of the Motor Vehicles Act, 1988 has not been amended yet.The bench of Justices R Subhash Reddy and Hrishikesh Roy in Kurvan Ansari alias Kurvan Ali & Anr. While dealing with a …

HC enhances motor accident compensation ₹1.5 crore
3 years, 8 months ago

HC enhances motor accident compensation ₹1.5 crore

The Hindu  

The Madras High Court on Wednesday enhanced from ₹18.43 lakh to ₹1.5 crore, the motor accident compensation awarded by a tribunal to a young woman dentist, who was knocked down from her two-wheeler and run over by a Metropolitan Transport Corporation bus on April 18, 2013. The balance amount of ₹30 lakh awarded towards future medical expenses should be deposited …

Fatal Motor Accident Cases: Principles For Computing Compensation
4 years, 5 months ago

Fatal Motor Accident Cases: Principles For Computing Compensation

Live Law  

With over 1.5 lakh deaths annually in motor accident cases in India, it is not unsurprising that claims on account of compensation for motor accident deaths is one of the most disputed arenas of litigation in the Supreme Court. In Arun Kumar Agrawal v. National Insurance Co. Ltd., the MACT gave notional income of INR 5,000/- per month to the …

How Can They Lead 'Proof Of Income'? SC Enhances Compensation To Family Of Carpenter Who Died In Accident [Read Order]
5 years, 3 months ago

How Can They Lead 'Proof Of Income'? SC Enhances Compensation To Family Of Carpenter Who Died In Accident [Read Order]

Live Law  

What proof they can lead except to lead oral evidence, remarked Supreme Court while enhancing the compensation awarded to the family of a carpenter who died in an accident.The Motor Accidents Claims Tribunal assessed the income of the deceased at Rs.1,250 per month but since no positive proof of income was led, the income of Rs.15,000 per annum was taken …

Claims tribunal grants wife of road accident victim ₹15 lakh compensation
5 years, 4 months ago

Claims tribunal grants wife of road accident victim ₹15 lakh compensation

The Hindu  

A Motor Accident Claims Tribunal has awarded a compensation of ₹15.13 lakh to the wife of a 22-year-old man who lost his life in a road accident in 2017. Unskilled worker The petitioners had demanded ₹35 lakh compensation but the tribunal brought down it to ₹15.13 lakh by fixing deceased’s earning at ₹6,162 per month of an unskilled worker at …

Income Tax Cannot Be Levied On Interest From Motor Accident Compensation : Bombay HC [Read Judgment]
5 years, 5 months ago

Income Tax Cannot Be Levied On Interest From Motor Accident Compensation : Bombay HC [Read Judgment]

Live Law  

In a significant judgment, the Bombay High Court has held that interest awarded on compensation in motor accident cases is not 'income' and therefore not liable to be taxed under the Income Tax Act 1961. Shah filed the petition seeking Court's opinion whether income tax department was justified in taking away 30% of the interest on the compensation amount which …

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