Motor Accident : Compensation in absence of documentry proof of income, can be asseses fro life style of deceased
Allahabad High Court Upholds Tribunal's Compensation in Motor Accident Claim Insurance Company's Appeal Dismissed; Tribunal's Income Assessment Method Validated
In a significant ruling, the Allahabad High Court has upheld the compensation awarded by the Motor Accidents Claims Tribunal in the case of the untimely death of Haribabu, who tragically lost his life in a motor vehicle accident on January 8, 2023. The First Appeal From Order No. 1880 of 2025, filed by the New India Assurance Company Limited, was dismissed at the admission stage by Justice Sandeep Jain on October 16, 2025.
The deceased, Haribabu, was travelling in a loader when it was hit by a rashly driven D.C.M. vehicle, leading to fatal injuries. The Tribunal had awarded a compensation of Rs. 48,56,250/- to Smt. Sangeeta Devi and others, the claimants, along with an interest rate of 7.5% per annum. This compensation was based on an assessment of Haribabu's monthly income, derived from his lifestyle and the expenditure incurred, despite the absence of documentary proof of income.
Justice Sandeep Jain, citing the precedent set by the Supreme Court in Gurpreet Kaur v. United India Insurance Co. Ltd., emphasized that a tribunal can assess income based on the deceased's lifestyle and recurring expenditures. In Haribabu's case, it was established that he was making regular EMI payments of Rs. 18,250/- for a loan taken to purchase the loader, and his family of six depended on an additional income of Rs. 7,000/- per month, leading to a calculated monthly income of Rs. 25,250/-.
The appeal raised by the insurance company argued against the income assessment, claiming no documentary proof was provided. However, Justice Jain validated the Tribunal's approach, stating it was justified in law and fact, considering the welfare objective of the legislation under the Motor Vehicles Act, 1988.
Furthermore, the court noted that while the U.P. Motor Vehicle Rules, 1998 entitled claimants to future prospects at 50% for deceased individuals below 40 years, the Tribunal had awarded only 40%, a point that was not contested in the appeal.
Ultimately, the High Court affirmed the Tribunal's judgment and award, directing the office to remit back the statutory deposit made by the insurance company to the concerned Tribunal. The dismissal of the appeal reinforces the judiciary's stance on assessing compensation based on the practical economic circumstances of the deceased's lifestyle and obligations.
Bottom Line:
Tribunal can assess the income of the deceased based on expenditure incurred by him and his lifestyle, even in absence of documentary proof of income.
Statutory provision(s): Motor Vehicles Act, 1988 Section 173, U.P. Motor Vehicle Rules, 1998 Rule 220-A
New India Assurance Company Limited v. Smt. Sangeeta Devi, (Allahabad) : Law Finder Doc Id # 2795502
