Team  SoOLEGAL

Motor Accident Insurance Claims: Supreme Court Issues Guidelines To Calculate Compensation

Team SoOLEGAL 1 Nov 2017 3:15pm

Motor Accident Insurance Claims: Supreme Court Issues Guidelines To Calculate Compensation

In a path-breaking judgment, the Supreme Court of India issued guidelines on fixation of future prospects for deciding compensation in motor accident claims.

 The court held that 'future prospect' of a person killed in a road accident would be considered while awarding compensation to the dependents and laid down standard criteria for computation of such claims.

The judgment was delivered by a Constitution Bench of Chief Justice Dipak Misra and Justices AK Sikri, AM Khanwilkar, DY Chandrachud and Ashok Bhushan. The bench fixed the percentage of salary or income of a self-employed and a person working in private sector which would be computed under the head of 'future prospect' for granting compensation to the dependents.

Accepting the principle of standardisation, it said, "while determining the income, an addition of 50 per cent of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made.

"The addition should be 30 per cent, if the age of the deceased was between 40 to 50 years. In case the deceased was between the age of 50 to 60 years, the addition should be 15 per cent.

Actual salary should be read as actual salary less tax."

"In case the deceased was self-employed or on a fixed salary, an addition of 40 per cent of the established income should be the warrant where the deceased was below the age of 40 years.

"An addition of 25 per cent where the deceased was between the age of 40 to 50 years and 10 per cent where the deceased was between the age of 50 to 60 years should be regarded as the necessary method of computation. The established income means the income minus the tax component," it said.

The apex court also fixed the amount to be paid to the dependents of road accident victims under heads such as loss of consortium and funeral expense and said that there would be 10 per cent raise in the amount after every three years. [PTI Inputs]

Tagged: Supreme Court   Motor accident   Road Accident   Accident Claims  
Did you find this write up useful? YES 13 NO 1
Send
Digital Payment Systemview all

Active Members

Have you activated yours ?

New Members view all
×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.