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The Supreme Court upheld liability under a comprehensive motor insurance policy for the owner travelling as a passenger, and issued broad directions to improve uninsured-vehicle enforcement.
Pensionary or retirement benefits cannot be deducted from the last drawn salary when computing compensation under the Motor Vehicles Act; the Tribunal appointed Commissioner's unchallenged assessment of 77.72% (rounded to 78%) disability should be accepted; an addition of 30% for future prospects applies as the claimant was 43 years old; multiplier 14 is appropriate; applying these principles the compensation is enhanced to Rs.67,36,084 with simple interest at 7% p.a., payable by the respondents jointly and severally (Respondent No.2 to pay within six weeks).
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Court affirmed High Court finding that the accident was caused by rash and negligent driving; retained the Tribunal's income determination at ₹7,000 (no challenge) but accepted High Court enhancement to ₹8,000 was not allowed since no appeal, applied future prospects at 40% for a self-employed person aged 35 with multiplier 16, held husband was at least partially dependent so deduction for personal expenses fixed at 1/4th, awarded medical and other conventional heads and awarded loss of consortium to spouse and children, resulting in total compensation of ₹17,84,766.
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The Supreme Court held that on the preponderance of probabilities the accident was caused by rash and negligent driving of the trailer; the Tribunal and High Court erred in finding contributory negligence against the scooter driver merely because he held a learners licence or because the collision occurred at the tail-end of the trailer; accordingly the appellant was entitled to the full award of ₹16,00,000 to be paid by the insurer of the trailer with stipulated interest and deductions.
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The Supreme Court held that the School Leaving Certificate should be accepted for determining the deceased's date of birth over the Aadhaar Card, affirmed the MACT's notional income of Rs.9000 and applied a multiplier of 14, enhanced the rate of interest to 8% from the date of filing, recalculated compensation and rounded the award to Rs.15,00,000 to be released to the claimants as directed by the MACT.
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The courts below erred in disbelieving the eyewitness solely because his statement was not recorded by the police and in applying a de facto criminal standard of proof; tested on the preponderance of probabilities and considering the Mahazar recording damage to the car and consistent witness testimony, the car was involved in the accident and the appellants are entitled to compensation of Rs. 46,31,496 with interest as awarded.
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Where the appellant, employed as a gunman, suffered amputation of the right lower limb above the knee and was unable to perform his duties leading to termination, the Tribunal was right to assess loss of earning capacity at 100%; the High Court erred in reducing it to 80% and in its arithmetic; the Tribunal award is restored.
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The Court found the treating doctor's 54% limb-specific disability to be on the higher side for whole-body assessment, assessed whole-body permanent disability at 30% for comminuted fractures of both tibiae, recalculated heads of compensation (including enhanced amounts for pain and suffering, loss of amenities and loss of income during laid-up period), and modified the High Court award by enhancing compensation to Rs.11,67,405 with interest at 6% per annum from the date of filing, with directions for deposit of Rs.3,00,000 in a nationalized bank for five years and payment of the balance to t…
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Because Schedule-II's notional income of Rs.15,000 per annum was fixed in 1994 and the Central Government has not amended it despite its duty under Section 163-A(3), the Court increased the notional income for this non-earning deceased child to Rs.25,000 per annum, applied multiplier 15 to compute loss of dependency (Rs.3,75,000), and awarded total compensation of Rs.4,70,000 with interest at 6% per annum from the date of the claim petition; the insurer (respondent No.2) to pay and may recover from the owner (respondent No.1).
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The High Court was not justified in exercising its power under Order XLI Rule 33 CPC to reduce the Tribunal's award from Rs.5,42,633 to Rs.3,26,833 in an appeal filed by the claimant seeking enhancement when the Insurance Company had not challenged the Tribunal's finding on disability; accordingly the Tribunal award of Rs.5,42,633 dated 01.07.2017 is restored and the Insurance Company directed to pay that amount with 7% interest per annum from the date of filing the claim petition until actual payment within three months.
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