New Delhi, November 19, : , The Supreme Court ruled that compensation for motor vehicle accidents should take into account future income increases. A bench comprising justices M.R.Shah and Sanjiv Kanna stated that they believe even if a person dies while not in service or has no income, their legal heirs will still be entitled to the future as long as there is an increase in his income.
A previous judgment in which 40 percent of income was added had been cited by the bench.This decision was based on guesswork, taking into account the family history and educational qualifications.
if the deceased was under 40 years of age.
Family counsel for the deceased cited Prashant’s education and bright future and claimed that the High Court made an error by fixing future income at Rs.5,000 per month.They did not take into account the possibility of a rise in income.
Prashant, 21 years old at the time of accident was still in his third year of engineering.
Counsel for the Centre argued that the deceased did not earn any income at the time of his accident.
Therefore, no future increase in income would be possible.In the case of the deceased who wasn’t working or earning any income at the time of his death, the court noted that the amount of the deceased’s income must be determined based on the facts.
The bench stated that the perception that he would be static in his income is not consistent with human nature, which aims to move with the times and live with dynamism.
Prashant’s relatives appealed against Madhya Pradesh High Court Order.The court partially allowed appeals by Railways.It also reduced the compensation amount from Rs 12,85,000 down to Rs 6,10,000.
Prashant and his family filed a claim petition with the Motor Accidents Claims Tribunal for Rs 25 lakh.The MACT awarded Rs 12.85,000 and 7.5% interest each year.After assessing the monthly income of the deceased, the family moved to the highest court.The amount was reduced to Rs 6,10,000.
According to the top court, the minimum income for the deceased should have been Rs 10,000 per month.This is especially true when you consider that skilled labourers and labourers are getting Rs 5,000 per month under the Minimum Wages Act of 2012.
Prashant’s relatives are entitled to Rs 15,82,000 plus interest at 7% per annum, according to the top court.
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