LI Network
Published on: November 14, 2023 at 12:27 IST
The Punjab and Haryana High Court has ruled that there should be no restrictions in assessing the income of the deceased or injured individuals while determining compensation under the Motor Vehicles Act.
The court emphasized that the Minimum Wages Act should not impose limitations in evaluating just and fair compensation for dependents.
The court stated that, in the absence of a salary certificate, the ‘minimum wages notification’ can be considered as a benchmark for determining the notional income of the deceased in motor accident claim cases.
Justice Amarjot Bhatti, presiding over a batch of pleas filed by United India Insurance Company Limited, stressed that the income provided in the Minimum Wages Act can serve as a basic criterion or guideline for assessing the income of the deceased or injured. However, the circumstances of each case should be evaluated individually.
The court firmly asserted that there should be no restriction on assessing the income of the deceased or injured, ensuring that just and fair compensation is awarded to dependents.
The bench reasoned that the provision for granting compensation under the Motor Vehicles Act is a beneficial legislation, and imposing restrictions based on the Minimum Wages Act in such situations is unjustified.
The case in question involved a deceased individual running a photostat shop with an alleged income of Rs. 18,000 per month. As no proof of income was provided, the Motor Accident Claims Tribunal assessed the compensation based on the income as per DC Rate, amounting to Rs. 7,150 per month.
The court opined that there cannot be a fixed rule in situations where there is no documentary evidence regarding the income of the deceased. It clarified that the income of the deceased should not be restricted to the minimum wages revised from time to time.
The court noted that the compensation awarded by the Tribunal required re-calculation, considering the absence of future prospects. Consequently, the plea was disposed of after the court calculated the enhanced compensation.
Case Title: Kavita Devi and others v. United India Insurance Company Limited [FAO-1119-2018 (O&M) with Cross-OBJ-64-2022 (O&M)]
