Case Note & Summary
The National Insurance Company Limited appealed against the judgment and award dated 22-12-2008 passed by the Motor Accident Claims Tribunal, Bangalore, in MVC No.5189/2005, which awarded Rs.1,76,200/- with interest at 8% p.a. to the claimant, Srinivasa, for injuries sustained in a motor vehicle accident. The claimant contended that on 15-10-2004, while traveling in a car bearing registration No.CKR 8485 on NH-4 near L.Mallappa Shetty Lake, Hosakote, due to rash and negligent driving, the car dashed against an unknown lorry, causing him injuries. He claimed to be an ironing worker earning Rs.6,000/- per month. The Tribunal accepted his income and awarded compensation. The Insurance Company challenged the award, arguing that the claimant failed to produce any evidence to prove his income. The High Court, after hearing both sides, held that the claimant did not substantiate his income with any documentary proof. Applying the principle of notional income, the court assessed his income at Rs.4,500/- per month, based on prevailing minimum wages for unskilled workers. Consequently, the compensation was reduced to Rs.1,32,200/- with interest at 8% p.a. The appeal was partly allowed, modifying the award accordingly.
Headnote
A) Motor Accident Claims - Compensation Assessment - Notional Income - Section 173(1) Motor Vehicles Act, 1988 - Claimant failed to prove monthly income of Rs.6,000/- as an ironing worker - Court reduced compensation by applying notional income of Rs.4,500/- per month based on prevailing minimum wages - Held that in the absence of concrete evidence, notional income must be assessed reasonably (Paras 1-5).
Issue of Consideration
Whether the Tribunal erred in assessing the claimant's monthly income at Rs.6,000/- without sufficient evidence, and whether the compensation awarded is excessive.
Final Decision
Appeal partly allowed; compensation reduced from Rs.1,76,200/- to Rs.1,32,200/- with interest at 8% p.a. from the date of petition till deposit.
Law Points
- Motor Accident Claims
- Compensation Assessment
- Notional Income
- Burden of Proof
- Section 173(1) Motor Vehicles Act
- 1988
