Rajasthan High Court Enhances Compensation in Motor Accident Case

Court revises income assessment and consortium awards, boosting compensation to Rs. 68.51 lakhs with interest
In a notable judgment, the Rajasthan High Court has significantly enhanced the compensation awarded to the claimants in a motor accident case, raising the total to Rs. 68,51,328. The court's decision comes after revisiting the income assessment of the deceased, Dhalaram, who was involved in a tragic accident in 2014. The ruling, delivered by Ms. Rekha Borana J., re-evaluates the financial earnings and compensatory entitlements of the claimants, bringing clarity and justice to the appellants.
The case, S.B. Civil Misc. Appeal No. 3011 of 2018, saw the appellants, Smt. Imrati Devi and others, challenging the initial award of Rs. 7,88,692 granted by the Motor Accident Claims Tribunal in Jodhpur. Dissatisfied with the tribunal's assessment of the deceased's monthly income at Rs. 4,914, the appellants argued that Dhalaram's actual earnings were substantially higher due to his involvement in mining and agriculture.
The High Court, upon reviewing the evidence, acknowledged the deceased's engagement in multiple income-generating activities, including the ownership of heavy machinery and substantial loan repayments. Documentary evidence, such as statutory consents and bank statements, supported the claim of higher earnings. Consequently, the court reassessed the deceased's monthly income at Rs. 45,000, factoring in the diverse streams of livelihood.
Additionally, the court addressed the inadequacy of the compensation under the head of 'Consortium', awarding Rs. 40,000 to each claimant, including the deceased's spouse, children, and mother. This revision aligns with the principles laid out in precedents set by the Supreme Court, particularly in cases like National Insurance Company Limited v. Pranay Sethi and Magma General Insurance Co. Ltd. v. Nanu Ram Alias Chuhru Ram.
The enhanced compensation package now stands at Rs. 68,51,328, with the court directing an interest rate of 6% per annum from the date of filing the claim until payment. The judgment underscores the judiciary's role in ensuring fair compensation in personal injury and fatal accident cases, emphasizing the importance of considering all aspects of a deceased's earning capacity.
The respondent insurance company has been instructed to deposit the revised compensation within two months or face an increased interest rate of 7.5% per annum. This judgment sets a significant precedent for future cases involving the assessment of income and consortium in motor accident claims.
Bottom Line:
Motor Accident - Assessment of compensation for deceased who was engaged in multiple income-generating activities, including mining and agriculture, and had substantial loan repayments - Income of deceased enhanced considering documentary evidence and judicial precedents - Compensation under the head of 'Consortium' revised for multiple claimants.
Statutory provision(s): Motor Accident Claims, Income Assessment, Consortium Compensation
Smt. Imrati Devi v. Nattha Ram, (Rajasthan) : Law Finder Doc Id # 2782986