IN THE HIGH COURT OF JHARKHAND AT RANCHI
GAUTAM KUMAR CHOUDHARY, J.
Jhonga Guiya W/o Late Raju Hoe - Appellant
Versus
Md. Aslam Ansari S/o Md. Ismil - Respondent
M.A. No. 362 of 2014
Decided On : 18-03-2025
| Table of Content |
|---|
| 1. compensation appeal due to accident. (Para 1 , 2) |
| 2. calculation of compensation and income assessment. (Para 3 , 7) |
| 3. arguments regarding income and future prospects. (Para 4 , 5 , 6) |
| 4. insurance company's liability for compensation. (Para 8 , 9) |
| 5. final order allowing the appeal. (Para 10 , 11) |
JUDGMENT :
1. Heard, learned counsel for the parties. The claimants/appellants are in appeal for enhancement of the compensation awarded under Section 166 of the M.V. Act vide judgment/Award dated 14.03.2014 passed by learned District Judge-III-cum-MACT, Jamshedpur, in Compensation Case No.85 of 2009, whereby and whereunder compensation of Rs.11,28,000/- along with interest @ 9% per annum has been awarded in favour of the claimants/appellants.
2. As per the case of the claimants, on 13.06.2009, deceased (Raju Hoe) met with a motor vehicle accident involving a bus bearing Registration No.BR 16P 5188. At the time of accident, the deceased was driving his motorcycle and the accident occurred due to rash and negligent driving of the driver of the bus, as a result of which, he sustained fatal injuries regarding which Parsudih P.S. Case No.108 of 2009 was registered on the very same day of accident i.e. 13.06.2009 under Sections 279 /304A/427 IPC.
3. Learned Tribunal recorded a finding of fact regarding the accident and awarded compensation.
4. It is argued by the learned counsel for the claimants/appellants that at the time of death, deceased was working as Miner Helper under Uranium Corporation of India Limited (UCIL) and drawing a monthly salary of Rs.10,169/- per month as per the Salary Slip (Ext.10). However, the learned Tribunal has computed the compensation on the basis of monthly income of the deceased as Rs.7,437/- only and not the gross salary to which he was drawing.
5. He has further submitted that Future Prospect was also not granted while awarding compensation.
6. Learned counsel on behalf of Insurance Company defended the judgment and award of compensation. It is submitted that the learned Tribunal has rightly not considered the income of Rs.14,000/- which was claimed on the basis of oral submission. As per the pay slip (Exhibit 10), gross salary was Rs.7437/- and the deceased was getting pay of Rs.3310/- therefore, the learned Tribunal took monthly income of Rs.7437/-.
7. On perusal of pay slip (Exhibit 9), it is evident that in the last pay drawn, basic pay was Rs.11001/- and D.A.1859/- and, therefore, there is merit in the plea raised on behalf of the claimants that learned Tribunal erred in not taking gross salary of the deceased at the time of accident which will be Rs.11001/- + D.A.1859/- as the monthly income. Taking the monthly income of Rs.11001/- and D.A.1859/- (total as Rs.12,860/-), 26 years of age of the deceased at the time of accident, and 1/4th as personal and living expenses of the deceased, 50% future prospect, the final compensation amount will work as under:-
| Annual income of the deceased taking Rs. 12,860/- as monthly income + 50% as Future prospect | Rs. 1,54,320/- and after tax deduction, it will come as Rs. 1,38,888/- X 50% as Future prospect] i.e. Rs. 69,444/- | Rs. 2,08,332/- |
| Annual Dependency after deducting as 1/4th | Rs. 52,083/- | Rs. 2,08,332/- Minus Rs. 52,083/- = Rs.1,56,249/- |
| Multiplier taking 17 years as the age of the deceased to be 26 years at the time of the accident | 17 | Rs. 1,56,249/-X 17 = Rs. 26,56,233/- |
| Loss of Estate, Funeral Expenses and Loss of Consortium | Rs.84,000/- | Rs. 84,000/- |
| Total | Rs. 27,40,233/- |
8. The Respondent No.3-Insurance Company is liable to pay the aforesaid compensation amount along with interest at the rate of 6% per annum from the date of filing of the claim application till its realization. The payment shall be made within a month from the date of this order by the Insurance Company to the learned Tribunal and thereafter the Tribunal will disburse the same as per the terms fixed to the claimants within two weeks.
9. It goes without saying that the amount already paid shall be
AI
Compensation under the Motor Vehicles Act must be based on true income and future prospects, with recalculations leading to enhanced awards reflecting just damages for loss.
Compensation assessment for motor accident claims must accurately reflect income and consider established legal principles regarding future prospects and deductions for dependents.
The court established that compensation for death in a motor vehicle accident must reflect the deceased's actual income and consider future prospects, leading to a total compensation of Rs.9,91,200.
The court affirmed the Tribunal's compensation calculations, highlighting the need for documentary evidence in establishing income and age, resulting in a total compensation of Rs. 6,28,500/-.
The main legal point established in the judgment is the proper calculation of compensation under Section 166 of the Motor Vehicles Act, 1988, including the consideration of future prospects, personal....
Compensation in motor vehicle accident claims must consider all components of a deceased's income, including allowances, while applying only statutory deductions.
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