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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
ALKA SARIN
Cholamandlam Ms General Insurance Co. Ltd. – Appellant
Versus
Bimla Devi – Respondent
JUDGMENT :
Alka Sarin, J.
The present order shall dispose off both the above-captioned appeals - one being FAO-5166-2018 filed by the Insurance Company challenging the quantum of compensation awarded by the Motor Accident Claims Tribunal, Narnaul (hereinafter referred to as 'Tribunal') vide award dated 26.04.2018 and second being FAO-6426-2018 filed by the claimants for enhancement of compensation.2. Learned counsel for the Insurance Company would contend that the deceased in the present case was a bachelor and 24 years of age and hence deduction ought to have been 50% instead of 1/3rd as applied by the Tribunal. It is further the contention of the learned counsel for the Insurance Company that the income of the deceased ought to have been assessed as per the Minimum Wages Act, 1948.
3. Per contra, the learned counsel for the claimants would contend that the income of the deceased has rightly been assessed by the Tribunal as Rs.11,840/- per month keeping in view the fact that the deceased was 24 years of age at the time of the accident and had completed his BA (Bachelor of Arts) and he had a bright future ahead. It is further the contention of the learned counsel that deduction of 1/3
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.
Compensation in motor accident cases should be assessed based on actual income and future prospects, not solely on minimum wage standards.
The main legal point established in the judgment is the reliance on oral testimony to determine the deceased's income and the application of established legal principles to modify the compensation am....
The court ruled that oral evidence regarding income is valid even without documentary proof, leading to a reassessment of compensation based on future prospects.
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