HIGH COURT OF JUDICATURE FOR RAJASTHAN, BENCH AT JAIPUR
PRAVEER BHATNAGAR, J.
Dinesh Kumar, S/o. Shri Gyarsi Lal - Appellant
Versus
Maliram, S/o. Suna Ram Yadav and Ors. - Respondents
S.B. Civil Miscellaneous Appeal No. 2633 Of 2018
Decided On : 22-09-2023
Motor Accident Claims Tribunal - Assessment of Income - Loss of Income Due to Functional Disability - Future Prospects - Motor Vehicles Act, 1988, Section 166 - Compensation cases under Motor Vehicles Act, 1988 do not require strict rules of evidence as in criminal trials. The standard of proof is preponderance of probability. The court must assess the impact of permanent disability on earning capacity. Claimant entitled to future prospects in case of permanent disablement caused by a motor accident. Interest awarded by the Tribunal deemed just.
Fact of the Case:
The claimant/appellant Dinesh Kumar suffered injuries in a motor accident and filed a claim petition. The Tribunal partly allowed the claim and awarded compensation. The appellant challenged the assessment of income, interest awarded, and the adequacy of compensation under various heads.
Finding of the Court:
The court found that the Tribunal's assessment of the appellant's income was not sustainable and relied on documentary evidence to conclude that the appellant was earning Rs.13,000 per month. The court also held that the Tribunal's computation of compensation for loss of income due to functional disability and future prospects was incorrect. However, the interest awarded by the Tribunal was deemed just.
Issues: Assessment of income, adequacy of compensation under various heads, and the interest awarded.
Ratio Decidendi: The court emphasized that compensation cases under the Motor Vehicles Act, 1988 do not require strict rules of evidence as in criminal trials. The standard of proof is preponderance of probability. The court must assess the impact of permanent disability on earning capacity. Claimant entitled to future prospects in case of permanent disablement caused by a motor accident. Interest awarded by the Tribunal deemed just.
Final Decision: The appeal was allowed, and the court modified the award to grant the claimant a higher compensation of Rs.12,82,171/- along with interest at 9% per annum. The respondent Insurance Company was directed to deposit the enhanced amount of compensation within one month.
JUDGMENT :
1. The instant appeal arises out of the impugned judgment dated 15.02.2018 passed by Motor Accident Claims Tribunal, Bharatpur (hereinafter to be referred to as “Tribunal”).
2. The claimant/appellant Dinesh Kumar (hereinafter to be referred to as “injured”), preferred a claim petition, which was partly allowed and the compensation was granted to the tune of Rs.2,82,811/- in MACT Case No. 166/2012.
3. The Tribunal on scrutiny of the entire evidence led before held that injured Dinesh Kumar suffered injuries in the motor accident on 08.03.2012. The accident occurred due to rash and negligent driving of the driver of the offending vehicle. As the offending vehicle, on the date of the accident, was insured with the Respondent No.3 – Insurance Company, the Insurance Company was liable to pay compensation to the claimant.
4. The Tribunal assessed the income of the injured at Rs.4,082/- per month and considering 36% permanent disability awarded lump sum compensation of Rs.1,80,000/- towards the loss of income and awarded total compensation to the tune of Rs.2,82,811/-, the break up of which is as under:
| Loss of future earnings | Rs.1,80,000/- |
| Medical expenses | Rs.71,241/- |
| Pain and suffering | Rs.25,000/- |
| Transportation expenses | Rs.5,000/- |
| Loss of income @ 10 days | Rs.1570/- |
| Total compensation | Rs.2,82,811/- |
Grounds:-
(B) The interest awarded to the tune of 9% per annum is inadequate and the claimant is liable to get 12% interest on the awarded money.
(C) The award under the head of loss of income due to functional disability is inadequate and further the Tribunal did not award compensation under the head of future prospects to the appellant.
(D) The counsel for the Insurance Company justifies the compensation awarded to the appellant under various heads and prays for dismissal of the appeal.
Analysis:-
Assessment of Income
5. The Tribunal assessed the income of the appellant at the rate of Rs.4,082/- per month.
6. The Tribunal discarded the oral and documentary testimony of the claimant regarding his income and held that in the absence of cogent evidence to prove the salary certificate Exhibit-55, it is not proved that the appellant was earning Rs.13,000/- per month. However, the Tribunal while relying upon the Exhibit-53A, Exhibits- 56A, 54A, 57A and 58A concluded that the claimant is a qualified Teacher having experience in teaching.
7. In the absence of non-examination of the witness, who issued the salary certificate Exhibit-55, the Tribunal disbelieved it and further concluded that in the absence of income tax returns, bank passbook and other supportive documents it is not justified that the claimant was getting Rs.13,000/- per month as a Teacher. Based upon the prevalent rates applicable for the daily wagers the Tribunal computed the monthly salary of the claimant as Rs.4,082/- per month applicable for semi-skilled workers.
8. In Civil Appeal No.8179/2022 : Rajwati @ Rajjo & Ors. vs. United India Insurance Company Ltd. & Ors. and Seema & Ors. vs. United India Insurance Company Ltd. & Ors. : Civil Appeal No.8180/2022, Hon'ble Apex Court held that:-
Raj Kumar vs. Ajay Kumar & Ors. : (2011) 1 SCC 343
National Insurance Company Limited vs. Pranay Sethi & Ors. : (2017) 16 SCC 680
The main legal point established in the judgment is the determination of just compensation for motor vehicle accident victims under the Motor Vehicles Act, 1988, considering income estimation, future....
The court established that the assessment of compensation must reflect the claimant's actual earning capacity and the impact of permanent disability on future earnings, applying the correct multiplie....
Accident claim – Permanent disability and loss of earning capacity - submission of his counsel that his earning capacity has been totally reduced to 100% is not acceptable. 60% reduction in his earni....
Permanent functional disability significantly impacts compensation for loss of income, and Courts must prioritize accurate income assessment over mere percentage disability.
The court ruled that income tax returns are essential for determining compensation, and notional income must reflect actual earnings.
The assessment of future earning capacity must consider the nature of disability relative to the claimant's profession, not merely the percentage of physical disability.
In cases of permanent disability due to motor accidents, courts must consider proven income, future prospects, and the severity of injuries when determining compensation.
The percentage of permanent disability does not automatically determine the loss of earning capacity; a comprehensive assessment considering the claimant's occupation, age, and the nature of the disa....
The main legal point established is that the assessment of compensation in motor accident cases should consider the impact of permanent disability on the claimant's earning capacity, and the percenta....
The court established that evidence of income can be validated through oral testimonies despite lacking formal documentation, and defined functional disability as critical for compensation in persona....
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