ALKA SARIN
Mithlesh – Appellant
Versus
Prem – Respondent
JUDGMENT
Mrs. Alka Sarin, J. (Oral)
This order of mine shall dispose off the two above noted appeals being FAO-1108-2016 preferred by the claimant-appellants for enhancement and FAO-2669-2015 preferred by the Insurance Company challenging the quantum of compensation awarded vide award dated 03.12.2014 passed by the Motor Accident Claims Tribunal, Hisar (hereinafter referred to as 'the Tribunal').
2. Since the facts, as recorded in the impugned award passed by the Tribunal are not in dispute, the same are not being reproduced herein for the sake of brevity.
3. The Tribunal had awarded the following compensation :
| Sr. No. | Heads | Compensation Awarded |
| 1 | Monthly income | Rs. 4,000/- |
| 2 | Annual Income | [Rs. 4000 x 12] = Rs. 48,000/- |
| 3 | Future prospects 15% | [Rs. 48000 + Rs. 7200] =Rs. 55,200/- |
| 4 | Deductions 1/4th | [Rs. 55200 - Rs. 13800] = Rs. 41,400/- |
| 5 | Multiplier of 13 | [Rs. 41400 x 13] = Rs. 5,38,200/- = |
| 6 | Funeral expenses | Rs. 25,000/- |
| 7 | Loss of love and affection | Rs. 4,00,000/- |
| 8 | Total Compensation | Rs. 9,63,200/- |
| 9 | Interest | 7.5% per annum |
4. Learned counsel for the claimant-appellants would contend that the
Magma General Insurance Company Limited v. Nanu Ram alias Chuhru Ram
N. Jayasree v. Cholamandalam M.S General Insurance Company Ltd.
The court established that a housewife's notional income should be assessed based on minimum wage standards, and conventional heads must align with Supreme Court precedents for just compensation.
Income assessment for compensation must reflect realistic estimates, not merely minimum wage, ensuring just compensation based on evidence and established legal principles.
The court ruled that oral evidence regarding income is valid even without documentary proof, leading to a reassessment of compensation based on future prospects.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.