Compensation on motor vehicle accident for permanent disability

In case of damage to property, the application for compensation must be made by the owner of the damaged property. It is implied that in case of death of the owner of the property, the legal representatives of the deceased owner can competently claim compensation. An application for compensation arising out of an accident under Section 166 of Motor Vehicles Act, 1988 may be made:- • People, who have been injured in accidents on the road, can themselves file for compensation or route the claims through their advocates. 

Section 166 –      This is a Fault Liability claim – Victim/Legal Heirs of victim have to prove in the Court of Law the wrongful act/negligence/default of the owner causing injury/death.  Compensation is based on age/income/dependency etc. 

A five-Judge Bench of the Supreme Court while hearing the case ‘National Insurance Company Limited v Pranay Sethi’ agrees with the view on the standardization of the addition to revenue against future prospects in accordance with Article 168 of the Motor Vehicle Act 1988. It also noted that the concept of “fair compensation” should be determined on grounds of fairness, reasonableness and on acceptable legal standards, since such a provision “can never be in arithmetical exactitude”. The key takeaways from the guidelines are : • While the income is determined to follow the doctrine of actual income at the time of death and not to add any amount of future prospects to income for the determination of multiplicand, it would be unfair. The determination of income in the calculation of remuneration must include future prospects so that the method will come into the line of just compensation as mentioned in terms of Section 168 of the Act. • An addition of 50% of actual salary to the deceased’s income relative to future prospects, where the deceased had a permanent job and was under 40 years old. The addition should be 30% if the age of the deceased was between 40 and 50 years. If the deceased was between the age of 50 and 60, the addition must be 15%. Actual salary must be read as actual salary less tax. • If the deceased was self-employed or on a fixed salary, an addition of 40% of the income should be the warrant where the deceased was less than 40 years old. An addition of 25% where the deceased between the ages of 40 to 50 years and 10% where the deceased was between the ages of 50 and 60 should be regarded as the required calculation method. The established income means the income less the tax component. 

Thanks, Sir.

In this case, the Victim's employer is continuing the fixed pre-accident monthly pay of the victim, at its mercy. The pay can be discontinued as the victim is no more a regular employee of the organization.

If the calculation for compensation on account of loss of income will remain the same as you explained above?

Regards

The victim has to approach court of law with a petition to make his claim. 

The execution of the court order can be done only when the court passes appropriate orders