Case Note & Summary
The case involves an appeal by the United India Insurance Company Limited against the judgment and award dated 24th March 2005 passed by the Motor Accident Claims Tribunal, Akola in Claim Petition No. 159 of 2000. The original claimant, Smt Shanta, mother of deceased Alok Purushottam Kabra, sought compensation for the death of her son in a motor vehicle accident. Alok was travelling in a TATA Sumo bearing registration No. MH12JA/1019 on 20.9.1999 from Akola to Hyderabad. At about 5:00 am near village Chegunta, District Medak, on National Highway No. 7, the driver could not locate a truck proceeding ahead, causing the TATA Sumo to dash into the truck from behind. Alok sustained injuries and died on the spot. The TATA Sumo was owned by respondent no. 3 (Manohar s/o Daqmodar Rathi), driven by Sandeepkumar (deleted from appeal), and insured with the appellant. The claimant pleaded that Alok was a B.E. Production Engineer, employed as an apprentice with National Organic Chemical India Limited (NOCIL) receiving a stipend of Rs. 3500/-, and was to be absorbed in regular cadre with a salary of Rs. 7248/-. He had also passed the MBA entrance test and was interviewed at Maruti Udyog Limited, with an offer to join Rohit Polymeres Private Limited at Rs. 12,000/-. The claimant sought compensation of Rs. 8,50,000/-. The insurer denied liability. The Tribunal held that Alok died due to rash and negligent driving by the driver, and awarded Rs. 6,20,500/- with interest at 6% per annum from the date of petition till realization, payable jointly and severally by the insurer, driver, and owner. The appellant challenged the award, arguing that the Tribunal erred in considering future salary (Rs. 7282/-) instead of actual income at the time of accident. The High Court, after reviewing the evidence and the Tribunal's detailed discussion, found no error in the assessment. The court noted that the deceased was a qualified engineer with bright prospects, and the Tribunal had properly considered his future income. The appeal was dismissed, and the award was upheld.
Headnote
A) Motor Accident Claims - Compensation Assessment - Future Income - Section 166 Motor Vehicles Act, 1988 - The court considered whether the Tribunal correctly assessed compensation by taking into account the future salary the deceased would have earned after completing apprenticeship, rather than his actual stipend at the time of accident. The deceased was a B.E. Production Engineer, employed as an apprentice with a stipend of Rs. 3500/-, and had prospects of absorption with a salary of Rs. 7248/-. The Tribunal awarded Rs. 6,20,500/- with interest. The High Court upheld the award, finding no error in considering future income given the deceased's qualifications and prospects. (Paras 1-6)
Issue of Consideration
Whether the Tribunal erred in considering the future salary of the deceased (after completion of apprenticeship) instead of his actual income at the time of accident for computing compensation under the Motor Vehicles Act, 1988.
Final Decision
The High Court dismissed the appeal and upheld the judgment and award dated 24th March 2005 passed by the Motor Accident Claims Tribunal, Akola in Claim Petition No. 159 of 2000.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Future Income
- Apprentice Stipend
- Section 166 Motor Vehicles Act
- 1988
