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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
ALKA SARIN
New India Assurance Company Limited – Appellant
Versus
Mangi Devi – Respondent
| Table of Content |
|---|
| 1. review of compensation awarded and basis of assessment. (Para 1 , 2 , 3 , 4) |
| 2. minimum wages serve as a yardstick but should not limit compensation. (Para 8 , 12) |
| 3. legal framework guiding dependency and prospective income evaluation. (Para 10 , 11 , 13) |
| 4. final adjustments to compensation based on legal precedents. (Para 14 , 15) |
JUDGMENT :
Alka Sarin, J. (Oral)
1. The present appeal has been preferred by the appellant-Insurance Company aggrieved by the quantum of compensation awarded vide the impugned award dated 06.09.2017 passed by the Motor Accident Claims Tribunal, Karnal (hereinafter referred to as 'Tribunal').
2. Since the factum of the accident is not in dispute and only the quantum is being challenged, the facts are not being reproduced herein for the sake of brevity.
3. In the present case the Tribunal had awarded the following compensation :
Sr. No. | Heads | Calculation |
1. | Monthly Income | Rs. 10,520/- |
2. | Deduction 1/5th | Rs. 8,416/- [Rs. 10,520-2,104] |
3. | Annual Income | Rs. 1,00,992/- [Rs. 8,416 x 12] |
4. | Multiplier '15' | Rs. 15,14,880/- [Rs. 1,00,992 x 15] |
5. | Future prospects @ 50% | Rs. 7,57,440/- [Rs. 4,208 x 12 x 15] |
6. | Funeral and conveyance expenses | Rs. 25,000/- |
7. | Loss of love and a | |
The court concluded that minimum wage standards guide but must not constrain just compensation in motor vehicle accidents, allowing for comprehensive income assessments.
Income assessment for compensation must reflect realistic estimates, not merely minimum wage, ensuring just compensation based on evidence and established legal principles.
In motor accident claims involving minors, the deceased cannot be treated as a non-earner. Compensation must be calculated using the minimum wage of a skilled worker, applying the appropriate multipl....
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