Determining Compensation in Motor Accident Claim Cases: Legal Analysis

Appeal No 561/2019) filed by 1 Respondent No 1 herein, seeking to set aside the judgment and award dated 26.10.2018 passed by the Motor Accident Claim Tribunal/Additional District and Sessions Judge, Kaman, District Bharatpur (hereinafter referred to as ‘ Learned Tribunal’ ) in Misc. Vide Judgment and Award dated 26.10.2018, the Learned Tribunal awarded a compensation of Rs.19,64,218.75/- along with interest @ 7% per annum from the date of filing of the claim petition till the realization of the decretal amount. The Learned Tribunal added a multiplier of 15, thereby calculating the compensation to be Rs.25,25,635/- (Rs.14,031.25 x 12 x 15).

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Vide judgment and final order dated 29.04.2019, the High Court held that the Learned Tribunal erred in relying on the salary certificate (Exhibit-19) and pay slip (Exhibit-20) to ascertain the income of the deceased at Rs.11,225/- per month, as the person who issued the said documents was not examined before the Learned Tribunal. Thus, the loss of dependency was calculated at Rs.7,61,670/- (Rs.6,09,336/- + Rs.1,52,334/-).

Therefore, a total compensation of Rs.8,16,670/- (Rs.6,09,336/- + Rs.1,52,334/- + Rs.40,000/- + Rs.15,000/-) was awarded by the High Court. It was further contended that Appellant No 1’s evidence with regard to the salary of the deceased was corroborated by the salary certificate and pay slip of the deceased.

To support the aforesaid contentions, learned counsel for the Appellants placed reliance on the judgment of this Court in the case of United India Insurance Co. 1 and 2, respectively, argued that the salary certificate and pay slip of the deceased could not be proved either before the Learned Tribunal or before the High Court, and as such, grant of compensation awarded by the High Court is just, fair and reasonable and requires no interference by this Court.

We may in this context refer to the following significant aspects in regard to the Learned Tribunals and determination of compensation by Learned Tribunals:… (ii)The rules of pleadings do not strictly apply as the claimant is required to make an application in a form prescribed under the Act. As held by this Court in Sunita (Supra) and Kusum Lata (Supra), strict rules of evidence as applicable in a criminal trial, are not applicable in motor accident compensation cases, i.e., to say, “ the standard of proof to be borne in mind must be of preponderance of probability and not the strict standard of proof beyond all reasonable doubt which is followed in criminal cases”.

Resultantly, we affirm the findings of the Learned Tribunal so far as they relate to assessing the deceased’s income at Rs.11,225/- per month on the basis of aforementioned two documents. Therefore, annual income accounting for future prospects is Rs.1,34,700/- + Rs.40,410/- = Rs.1,75,110. Accordingly, the grant of Rs.40,000/- towards loss of consortium is increased to Rs.44,000/- to each Appellant, amounting to a total of Rs.2,20,000/-. In view of the facts and circumstances of the case, the rate of interest payable on the total compensation awarded is liable to be calculated at 9% per annum, from the date of filing of the claim petition before the Learned Tribunal till the date of realisation. HEAD AMOUNT PAYABLE 1 Loss of dependency Rs.21,21,525/- 2 Loss of consortium Rs.40,000/- 3 Loss of estate Rs.15,000/- 4 Funeral expenses Rs.15,000/- TOTAL Rs.21,91,525/-

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The Learned Tribunal calculated the rate interest at 7% per annum from the date of filing of the claim petition till the realisation of the decretal amount.

Further, 40% was awarded towards future prospects (amounting to Rs.2,61,144/-), Rs.40,000/- towards loss of consortium, and Rs.15,000/- towards funeral expenses. We do not agree with the view taken by the High Court while holding that since the person issuing the two aforementioned documents was not examined before the Tribunal the income of the deceased was assessed at Rs.4,836/- per month in view of the minimum wages fixed by the State at the relevant time.

Therefore, annual income accounting for future prospects is Rs.1,34,700/- + Rs.67,350/-

= Rs.2,02,050/-.

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Placing reliance on the Satinder Kaur @ Satwinder Kaur (Supra), the grant of Rs.40,000/- towards loss of consortium is increased to Rs.44,000/- to each Appellant, amounting to a total of Rs.1,76,000/-. As a result, the impugned judgments of the High Court dated 29.04.2019 in both the appeals are hereby set aside. 24,89,062.5/-

Case Title: RAJWATI @ RAJJO Vs. UNITED INDIA INSURANCE COMPANY LIMITED (2022 INSC 1267)

Case Number: C.A. No.-008179-008179 / 2022

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