Rajasthan HC Enhances Motor Accident Compensation by Rs. 1.41 Lakh, Cites Unreasonable Income Assessment

Keywords: Rajasthan High Court, Motor Accident Claims, compensation enhancement, semi-skilled labour, future potential, accident claim appeal

Rajasthan HC Revises Compensation in Motor Accident Case: From Rs. 8.04 Lakh to Rs. 9.45 Lakh

The Rajasthan High Court recently adjudicated an appeal challenging the compensation awarded by the Motor Accident Claims Tribunal (MACT), Suratgarh, in a motor accident case. While the Tribunal had granted Rs. 8,04,000 as compensation, the High Court increased the award to Rs. 9,45,360, citing an unreasonable income assessment of the deceased.

Background of the Case

The case arose from the tragic death of an 18-year-old in a motor accident on May 21, 2013. The claimant, the deceased’s mother, contended that her son was employed as a mechanic at the Suratgarh Thermal Plant, earning Rs. 8,000 per month, while the Tribunal calculated his income based on the minimum wage for unskilled labour at Rs. 150 per day. The appellant argued that this assessment undervalued the deceased’s earning potential.

Key Observations by the High Court

• The Court acknowledged that the deceased’s future potential should reflect his youth and capacity for a better career trajectory.
• Despite the absence of documentary evidence supporting the deceased’s employment, the Court deemed it unreasonable to base compensation on unskilled labour wages.
• Referring to the government notification effective at the time, the Court recalculated the deceased’s income as Rs. 176 per day, equivalent to Rs. 5,280 per month for semi-skilled labour.

Revised Compensation Breakdown

The Court upheld the Tribunal’s use of an 18-year multiplier and a 50% deduction for personal expenses, consistent with established legal precedents. Other awards, including Rs. 50,000 for consortium and Rs. 25,000 for funeral expenses, remained unchanged.

With the revised monthly income, the total compensation was recalculated at Rs. 9,45,360, an enhancement of Rs. 1,41,360.

Final Directions

The Court ordered the insurance company to deposit the enhanced amount, along with the previously awarded compensation, within two months. It specified an interest rate of 6% per annum on the enhanced amount from the date of the claim petition’s filing until actual payment. In case of non-compliance, the interest rate would increase to 7.5% per annum from the date of this order.

Implications

The judgment underscores the judiciary’s recognition of the potential future earnings of young individuals in compensation claims, even in the absence of documented proof. It reinforces a balanced approach to awarding just and reasonable compensation in motor accident cases.

Coram: Justice Rekha Borana

Citation: S.B. Civil Misc. Appeal No. 1686/2017

Order Date: 14/11/2024

Advocate for Petitioner: Adv. Ravi Panwar, Amit Pareek

Advocate for Respondent: Adv. Dinesh Kumar Joshi

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