Rajasthan HC Revises Compensation in Motor Accident Case, Highlights Potential for Brighter Future

Keywords: Rajasthan High Court, Motor Accident Claims Tribunal, compensation, semi-skilled wages, motor accident case, equitable redress,

The Rajasthan High Court has revised a compensation award made by the Motor Accident Claims Tribunal (MACT), Suratgarh, in a motor accident case involving the death of an 18-year-old. The Court increased the compensation from ₹8,04,000 to ₹9,45,360, recognizing that the deceased’s potential for a brighter future justified calculating his income based on semi-skilled labour wages, rather than wages for unskilled labour.

Background

The case arose from an appeal against the MACT’s decision on compensation for the death of the claimant’s son in an accident on May 21, 2013. The Tribunal had calculated the deceased’s monthly income at ₹3,375 based on unskilled labour wages, awarding ₹8,04,000 to the claimant. This amount included losses for income, consortium, and funeral expenses, along with an interest rate of 8% per annum.

Appellant’s Arguments

The claimant contested the Tribunal’s assessment, arguing that the deceased was employed as a mechanic at the Suratgarh Thermal Plant, earning ₹8,000 per month. The appellant claimed that calculating compensation based on unskilled labour wages undervalued the deceased’s earning potential and urged the Court to apply semi-skilled labour wages.

Respondent’s Defense

The respondent argued that no documentary evidence substantiated the deceased’s employment or income claims. During cross-examination, the claimant admitted that her son was a student. The respondent maintained that the Tribunal’s calculations were consistent with the evidence presented.

Court’s Observations and Decision

The High Court noted that although no documentary evidence proved employment, the deceased’s young age and potential warranted a more equitable calculation of income. Referring to the government-notified daily wage for semi-skilled labour (₹176) applicable at the time, the Court recalculated the monthly income at ₹5,280.

Key aspects of the judgment:

• Multiplier of 18: The Court retained the multiplier used for calculating future income loss, aligning with legal precedents.
• Personal Expense Deduction: A 50% deduction for personal expenses was upheld.
• Other Awards: Consortium (₹50,000) and funeral expenses (₹25,000) were deemed appropriate and remained unchallenged.

Revised Award

The recalculation led to an enhanced compensation of ₹9,45,360, marking an increase of ₹1,41,360. The High Court directed the insurance company to deposit the enhanced amount along with the original award within two months.

• Interest Rate: The enhanced amount will accrue 6% annual interest from the claim filing date.
• Penalty for Delay: A higher interest rate of 7.5% per annum will apply if payment is delayed.

Conclusion

The High Court directed the MACT to oversee the timely disbursement of the revised compensation. This judgment reinforces the need to consider the future potential of young victims in motor accident cases, ensuring justice is both pragmatic and fair.

Case Title: Gurvinder Kauv. Bhanwara Ram & Ors.

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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