High Court’s Reduction Overturned On Motor Accident Claims
The Supreme Court ruled that dependents taking over a deceased person’s business cannot justify reducing motor accident compensation. A bench of Justices Sudhanshu Dhulia and Ahsanuddin Amanullah reinstated the compensation iqnitially awarded by the Motor Accidents Claims Tribunal (MACT), overturning the High Court’s reduction.
Background
The case involved two daughters seeking compensation for their parents, who died in a road accident. The MACT awarded ₹58.24 lakh for the father and ₹93.61 lakh for the mother, with 7.5% annual interest. However, the High Court reduced these amounts to ₹26.68 lakh and ₹19.22 lakh, reasoning that the daughters faced minimal financial loss as they had taken over the business.
Supreme Court’s Ruling
Justice Amanullah, in his judgment, emphasized that the High Court failed to consider the deceased parents’ role in building the business. The Court noted that young, inexperienced dependents might struggle to sustain profitability. This impacts future earnings, a crucial factor in compensation assessment.
The Supreme Court reiterated in K Ramya & Ors. vs. National Insurance Co Ltd that insurers cannot reduce compensation merely because claimants continue the deceased’s business.
Conclusion
The Court restored the compensation awarded by the MACT. The Supreme Court affirmed that claims assessment must consider the deceased’s contribution to the business.
What Is The Motor Accident Claim?
Motor accident claims ensure fair compensation for victims and their families. The Supreme Court ruled that compensation cannot be reduced if dependents continue the deceased’s business. Loss of life impacts earnings, emotional well-being, and financial stability. Courts calculate claims based on income loss, medical expenses, and future needs. Insurance companies must provide just compensation to prevent financial hardship. Claimants should present strong evidence, including income proof and dependency details. Legal experts recommend filing claims promptly for maximum benefits. Proper legal guidance helps secure rightful compensation. Victims’ rights must be protected to ensure justice and financial security.
