Motor Vehicle Accident Claims
Any loss to a family is undesirable and unfortunate. However in the larger play of the Supreme Being some of our beloved one departs earlier than us, thus leading us into depression and sorrow. This sorrow will be even more if the victim is a sole bread winner of the family. The entire family is thrown out of safety net as far provided by the bread winner.
However with the tortuous law evolution there is a provision for monetary compensation for the unfortunate loss caused. Though this monetary compensation will never bring the person back, but surely give us some protection which the victim used to provide. The provision of monetary compensation is provided in Motor Vehicle Act, 1988.
Through this article we would like to bring awareness on the computation of compensation in Motor Vehicle accidents.
When a person is Injured or Died or his/her property is damaged… the legal heirs of the victim can claim compensation through Motor vehicle Accidents Claims Tribunal.
In case of Injury or Death the compensation heads are Pecuniary and Non-Pecuniary.
A) Pecuniary compensation are again classified under
A-1) Loss of earnings
A-2) Transport to Hospital
A-3) Extra Nourishment & Medicines
A-4) Funeral Expenses
A-5) Any other
B) Non- Pecuniary Includes
B-1) Loss of consortium (Only to spouse)
B-2) Loss of guidance to minor children
B-3) Loss of love and affection to aged parents
B-4) Loss of estate
Most of the times the petitions are taking years and years, thus purpose of the compensation are totally negated. Besides that, the way most of the compensation claims are drafted without following latest Supreme Court Judgments, is leading to violation of rights of the Victims are their legal heirs.
Me and Avinash Ila Thought that to share what we have learned in the last one week with all of you, so that It may add some value to your Compensation claims in unfortunate and undesirable motor vehicle Accidents.
While Deciding the Claim, A-1 is the most important factor and will have lion share.
The important factors while claiming compensation are
1. Income of Victim/Deceased at the time of Accident
2. Age of the Victim/Deceased
3. Dependents of the Victim/Deceased
If pay slip is present there is no problem, even otherwise the income can be taken as minimum 6000 per month or more based on the skill of the Victim or diseased.
For example if a person aged 35 years having regular monthly income of 10,000, having aged mother and father, wife, two minor kids (dependents are 5); on an unfortunate day, if he met with an accident and died on the spot.
As he is below 40 years, his income need to be increased by 50%; then it becomes 15000 [ 40 to 50 age- 30% increase as per; more than 50 years NO INCREASE---This is based on Supreme Court Judgement- Santosh Devi v. National Insurance Com Ltd [1] (2012) 6 SCC 421 and followed in Reshma Kumari Vs Madan Mohan [3] (2013) 9 SCC 65; Rajesh Vs Rajbir Singh [4] (2013) 9 SCC 54 ]
Now we have to deduct his own expenditure out of 15,000…Supreme Court in Sarla Verma Vs DTC; (2009) 6 SCC 121, has decided that
2 to 3 Dependants (1/3rd); 4 to 6 Dependants then (1/4th) More than 6 then (1/5 th ); and if Batchelor half income should be deducted.
In this case 5 dependants, thus 1/4th should be reduced i.e 15000-(1/4)(15000)=11250
His Annual loss of Income to the dependants is 11250 * 12 =1,35,000
This annual amount needs to be multiplied with age appropriate multiplies as given by SC in Sarla Verma Vs DTC; (2009) 6 SCC 121; for the present case the multiplier is 16
The loss of income is 1,35,000*16=21,60,000
TABLE-1 (Sarla Verma Vs DTC; (2009) 6 SCC 121)
Multiplier-Age-Group of Diseased/Injured
M-18 15 to 20 and 21 to 25
M-17 26-30
M-16 31-35
M-15 36-40
M-14 41-45
M-13 46-50
M-11 51-55
M-9 56-60
M-7 61-65
M-5 66-70
Now let’s move to A-2; A-3 and A-4; the entire medical bill and other bill for transportation, medicines, special nourishment as part of treatment should be added under these heads. If bills are present, it is easy for the Advocate to defend the case, even otherwise he can get amount based on general practice. If no bills, this amount can vary from case to case.
Then Moving on to calculate compensation under Non- Pecuniary head.
As per below Supreme Court cases
1. Sandhya Rani Debbarma vs The National Insurance Co. Ltd
2. Asha_Verman_vs_Maharaj_Singh (Mar 2015)
3. Kalpanaraj & Ors. v. Tamil Nadu State Transport Corporation
They are as under
Funeral expenses Rs. 25,000/-
Loss of consortium (Only to spouse) Rs.1,00,000/-
Loss of guidance to minor children Rs.1,00,000/-
Loss of love and affection to aged parents Rs.1,00,000/-
Loss of estate Rs.1,00,000/-
Litigation costs (Court may or may not grant) Rs. 25,000/-
Loss of Estate means Loss of estate includes compensation for pain and suffering, loss of enjoyment of amenities, etc. of the deceased.
Now calculating the total compensation in the present case….
--------------------------------------------------------------------
Loss of earnings 21,60,000
Transport to Hospital 15,000
Extra Nourishment & Medicines 25,000
|Funeral expenses Rs. 25,000/- 25,000
|Loss of consortium (Only to spouse) 1,00,000
|Loss of guidance to each minor children 2,00,000
|Loss of love and affection to each aged
parents 2,00,000
|Loss of estate 1,00,000
|Litigation costs (Court Discretion) 25,000
-------------------------------------------------------
Total 28,50,000
--------------------------------------------------------------------
Just imagine for a person having 10,000 incomes the claims can be as much as 28 Lakh. Though the compensation varies in each case based on the facts and circumstances, the above stated as general rules, which can’t be deviated.
Besides many Claim petitions are of very poor quality without having detailed calculation with supporting Supreme Court or High Court Cases Laws. Therefore the case will be dragged for years in the Tribunal.
Besides the same sort of calculation can also be done for injured and house wives with no outside income as well (U/s 163A)
The below are cases laws where the victim is housewife with no income:
Lata Wadha and others v. State of Bihar and others (2001) 8 SCC 197
InKemp and Kemp on Quantum of Damages, (Special Edition - 1986),
Regan v. Williamson (1976) 1 W.L.R. 305,
Mehmet v. Perry (1977) 2 All ER 52,
Rajam v. M. Manikya Reddy 1989 ACJ 542 (Andhra Pradesh HC)
National Insurance Company Ltd. v. Mahadevan, Minor Buvanadevi, Minor Venkatesh and
Parameswaran (2009) ACJ 1373
Oriental Insurance Co. Ltd. v. Shamsher Singh Manu-JK-0180- 2002, Jammu and Kashmir HC
Similarly for injured
Raj Kumar v. Ajay Kumar & Another, (2011) 1 SCC 343
Syed Sadiq and others v. Divisional Manager, United India Insurance Company Limited, (2014) 2 SCC 735.
We elaborate injured compensation and House wives compensation details in future articles.
Thanking You
Avinash Ila, 3/3 LLB, Andhra University
Thandava Yogesh, 3/3 LLB, Andhra University
In case of any doubts or advises you can write to us at
Avinash3g@gmail.com or
Yogesh_Thandava@Yahoo.co.in
Any loss to a family is undesirable and unfortunate. However in the larger play of the Supreme Being some of our beloved one departs earlier than us, thus leading us into depression and sorrow. This sorrow will be even more if the victim is a sole bread winner of the family. The entire family is thrown out of safety net as far provided by the bread winner.
However with the tortuous law evolution there is a provision for monetary compensation for the unfortunate loss caused. Though this monetary compensation will never bring the person back, but surely give us some protection which the victim used to provide. The provision of monetary compensation is provided in Motor Vehicle Act, 1988.
Through this article we would like to bring awareness on the computation of compensation in Motor Vehicle accidents.
When a person is Injured or Died or his/her property is damaged… the legal heirs of the victim can claim compensation through Motor vehicle Accidents Claims Tribunal.
In case of Injury or Death the compensation heads are Pecuniary and Non-Pecuniary.
A) Pecuniary compensation are again classified under
A-1) Loss of earnings
A-2) Transport to Hospital
A-3) Extra Nourishment & Medicines
A-4) Funeral Expenses
A-5) Any other
B) Non- Pecuniary Includes
B-1) Loss of consortium (Only to spouse)
B-2) Loss of guidance to minor children
B-3) Loss of love and affection to aged parents
B-4) Loss of estate
Most of the times the petitions are taking years and years, thus purpose of the compensation are totally negated. Besides that, the way most of the compensation claims are drafted without following latest Supreme Court Judgments, is leading to violation of rights of the Victims are their legal heirs.
Me and Avinash Ila Thought that to share what we have learned in the last one week with all of you, so that It may add some value to your Compensation claims in unfortunate and undesirable motor vehicle Accidents.
While Deciding the Claim, A-1 is the most important factor and will have lion share.
The important factors while claiming compensation are
1. Income of Victim/Deceased at the time of Accident
2. Age of the Victim/Deceased
3. Dependents of the Victim/Deceased
If pay slip is present there is no problem, even otherwise the income can be taken as minimum 6000 per month or more based on the skill of the Victim or diseased.
For example if a person aged 35 years having regular monthly income of 10,000, having aged mother and father, wife, two minor kids (dependents are 5); on an unfortunate day, if he met with an accident and died on the spot.
As he is below 40 years, his income need to be increased by 50%; then it becomes 15000 [ 40 to 50 age- 30% increase as per; more than 50 years NO INCREASE---This is based on Supreme Court Judgement- Santosh Devi v. National Insurance Com Ltd [1] (2012) 6 SCC 421 and followed in Reshma Kumari Vs Madan Mohan [3] (2013) 9 SCC 65; Rajesh Vs Rajbir Singh [4] (2013) 9 SCC 54 ]
Now we have to deduct his own expenditure out of 15,000…Supreme Court in Sarla Verma Vs DTC; (2009) 6 SCC 121, has decided that
2 to 3 Dependants (1/3rd); 4 to 6 Dependants then (1/4th) More than 6 then (1/5 th ); and if Batchelor half income should be deducted.
In this case 5 dependants, thus 1/4th should be reduced i.e 15000-(1/4)(15000)=11250
His Annual loss of Income to the dependants is 11250 * 12 =1,35,000
This annual amount needs to be multiplied with age appropriate multiplies as given by SC in Sarla Verma Vs DTC; (2009) 6 SCC 121; for the present case the multiplier is 16
The loss of income is 1,35,000*16=21,60,000
TABLE-1 (Sarla Verma Vs DTC; (2009) 6 SCC 121)
Multiplier-Age-Group of Diseased/Injured
M-18 15 to 20 and 21 to 25
M-17 26-30
M-16 31-35
M-15 36-40
M-14 41-45
M-13 46-50
M-11 51-55
M-9 56-60
M-7 61-65
M-5 66-70
Now let’s move to A-2; A-3 and A-4; the entire medical bill and other bill for transportation, medicines, special nourishment as part of treatment should be added under these heads. If bills are present, it is easy for the Advocate to defend the case, even otherwise he can get amount based on general practice. If no bills, this amount can vary from case to case.
Then Moving on to calculate compensation under Non- Pecuniary head.
As per below Supreme Court cases
1. Sandhya Rani Debbarma vs The National Insurance Co. Ltd
2. Asha_Verman_vs_Maharaj_Singh (Mar 2015)
3. Kalpanaraj & Ors. v. Tamil Nadu State Transport Corporation
They are as under
Funeral expenses Rs. 25,000/-
Loss of consortium (Only to spouse) Rs.1,00,000/-
Loss of guidance to minor children Rs.1,00,000/-
Loss of love and affection to aged parents Rs.1,00,000/-
Loss of estate Rs.1,00,000/-
Litigation costs (Court may or may not grant) Rs. 25,000/-
Loss of Estate means Loss of estate includes compensation for pain and suffering, loss of enjoyment of amenities, etc. of the deceased.
Now calculating the total compensation in the present case….
--------------------------------------------------------------------
Loss of earnings 21,60,000
Transport to Hospital 15,000
Extra Nourishment & Medicines 25,000
|Funeral expenses Rs. 25,000/- 25,000
|Loss of consortium (Only to spouse) 1,00,000
|Loss of guidance to each minor children 2,00,000
|Loss of love and affection to each aged
parents 2,00,000
|Loss of estate 1,00,000
|Litigation costs (Court Discretion) 25,000
-------------------------------------------------------
Total 28,50,000
--------------------------------------------------------------------
Just imagine for a person having 10,000 incomes the claims can be as much as 28 Lakh. Though the compensation varies in each case based on the facts and circumstances, the above stated as general rules, which can’t be deviated.
Besides many Claim petitions are of very poor quality without having detailed calculation with supporting Supreme Court or High Court Cases Laws. Therefore the case will be dragged for years in the Tribunal.
Besides the same sort of calculation can also be done for injured and house wives with no outside income as well (U/s 163A)
The below are cases laws where the victim is housewife with no income:
Lata Wadha and others v. State of Bihar and others (2001) 8 SCC 197
InKemp and Kemp on Quantum of Damages, (Special Edition - 1986),
Regan v. Williamson (1976) 1 W.L.R. 305,
Mehmet v. Perry (1977) 2 All ER 52,
Rajam v. M. Manikya Reddy 1989 ACJ 542 (Andhra Pradesh HC)
National Insurance Company Ltd. v. Mahadevan, Minor Buvanadevi, Minor Venkatesh and
Parameswaran (2009) ACJ 1373
Oriental Insurance Co. Ltd. v. Shamsher Singh Manu-JK-0180- 2002, Jammu and Kashmir HC
Similarly for injured
Raj Kumar v. Ajay Kumar & Another, (2011) 1 SCC 343
Syed Sadiq and others v. Divisional Manager, United India Insurance Company Limited, (2014) 2 SCC 735.
We elaborate injured compensation and House wives compensation details in future articles.
Thanking You
Avinash Ila, 3/3 LLB, Andhra University
Thandava Yogesh, 3/3 LLB, Andhra University
In case of any doubts or advises you can write to us at
Avinash3g@gmail.com or
Yogesh_Thandava@Yahoo.co.in
Very valuableone anna,info to be pass more across.....
ReplyDeleteAnd i to hav learnt actually,Before subject strted to me yet....
This is Akhil D 4/5 LLB (AU),
Ur beloved Frnd.
Explaining with cases is very good and you both given very useful information. Thank you both of Avinash garu and Yogesh garu. I hope you will provide some more information which is usefull to public......
ReplyDelete