Motor Vehicles Act, 1988: Claims and legal liabilities
crystallise at the time of accident itself – Any changes post thereto,
ought not to ordinarily affect pending proceedings – Just like how
claimants cannot rely upon subsequent increases in minimum wages,
the insurer too cannot seek benefit of the subsequent death of a
dependent during the pendency of legal proceedings – Similarly,
any concession in law made in this regard by either counsel would
not bind the parties.
B
C
D
Concession in law: Permissibility, extent of – Held: Advocates
cannot throw away legal rights or enter into arrangements contrary
to law – Motor Vehicles Act, 1988.
Motor Vehicles Act, 1988: Assessment of income in the absence
of evidence – Held: In the instant case, although it is correct that
the claimants were unable to produce any document evidencing
victim-husband’s income, nor they established his employment as a
teacher; but that would not justify adoption of the lowest-tier of
minimum wage while computing his income – From the statement of
witnesses, documentary evidence-on-record and circumstances of
the accident, it is apparent that victim was comparatively more
educationally qualified and skilled – Further, he maintained a
reasonable standard of living for his family as evidenced by his use
of a motorcycle for commuting – Preserving the existing standard of
living of a deceased’s family is a fundamental endeavour of motor
accident compensation law – Thus, the minimum wage of Rs 6197
as applicable to skilled workers applied in his case. Motor Vehicles Act, 1988: Future prospects – In case the
deceased was self-employed or on a fixed salary, an addition of
40% of the established income should be the warrant where the deceased was below the age of 40 years – An addition of 25%
where the deceased was between the age of 40 to 50 years and
10% 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 –
The argument that no future prospects ought to be allowed for those
with notional income, is both incorrect in law and without merit
considering the constant inflation-induced increase in wages.
Motor Vehicles Act, 1988: Calculation of notional income for
homemakers and the grant of future prospects with respect to them,
for the purposes of grant of compensation – Determining factors,
discussed. (Per N.V. Ramana, J – Supplementing).