+

Gauhati HC Enhances Compensation By ₹1.5 Lakh In Motor Accident Claim

 

GUWAHATI: The Gauhati High Court has increased the compensation awarded to the widow of a deceased driver by ₹1.5 lakh, following an appeal against the judgement of the Motor Accident Claims Tribunal (MACT), Darrang. The enhancement came after the court considered future prospects and the monthly income of the deceased as stated by his employer.

The case revolves around a tragic accident that occurred on September 18, 2011, resulting in the death of a driver, who was employed to operate an excavator. The widow of the deceased filed a claim with the MACT, Darrang, stating that her husband earned ₹8,000 per month. This claim was corroborated by another co-worker, despite the absence of documentary proof of income.

Click here to join our WhatsApp channel

The Motor Accident Claims Tribunal, in its decision dated February 10, 2014, awarded the claimant ₹4,85,000 with an interest rate of 6% per annum. Dissatisfied with the compensation, the widow filed an appeal under Section 173 of the Motor Vehicles Act, 1988, seeking an enhancement of the award.

Justice Sanjay Kumar Medhi, presiding over the case, noted the challenges of proving income in the unorganised sector where employment records are often undocumented. The judge emphasised that tribunals should adopt a reasonable approach to ascertain employment and income, even in the absence of documentary evidence.

The court recognised the discrepancy in the Tribunal's assessment, which had taken a notional income of ₹3,000 per month. This was despite the employer's written statement acknowledging the deceased's monthly income as ₹4,500 and his employment as an excavator driver.

The counsel for the appellant argued that the Tribunal failed to consider the consistent testimonies and the employer's admission regarding the deceased's income. They further contended that future prospects were not factored into the compensation, citing precedents set by the Supreme Court in National Insurance Co. Ltd. v. Pranay Sethi (2017) and Santosh Devi v. National Insurance Company Ltd. (2012), which stipulate future prospects to be 40% and 30%, respectively.

ALSO READ: Gauhati High Court Dismisses Application For Delay In Matrimonial Appeal

The defence, representing the insurance company, maintained that the Tribunal’s notional income assessment was justified due to the lack of documentary evidence. Medhi ruled that the Tribunal had inadequately assessed the deceased's monthly income and failed to consider future prospects.

Citing the Supreme Court’s guidance on future prospects, the judge concluded that an enhancement was warranted. The court ordered an additional compensation of ₹1.5 lakh, to be paid by the insurance company within 45 days.

If the payment is delayed, an interest rate of 9% per annum will apply from the end of the 45-day period until payment is made. The additional amount will be released to the claimant upon proper identification by her counsel.

facebook twitter