High Court of Bombay Partly Allows Insurance Company's Appeal in Motor Accident Claim — Reduces Compensation for Loss of Income Due to Double Counting. The Court set aside award for loss of income from private practice for lack of evidence and reduced award for loss of income due to absence from duty as claimant had been paid salary.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The appeal was filed by Bajaj Alliance Insurance Co. Ltd. challenging the order dated 4th July 2012 of the Motor Accident Claims Tribunal, Thane, which awarded Rs.11,71,394/- to the claimant, Rohidas Ambadas Chavan, for injuries sustained in a motor accident. The claimant, a doctor, suffered injuries and was absent from duty for 11 months. The Tribunal awarded Rs.6,60,000/- for loss of income from private practice and Rs.3,66,586/- for loss of income due to absence from duty. The Insurance Company argued that there was no evidence of income from private practice and that the award for loss of income due to absence from duty was excessive and amounted to double counting. The High Court found that the claimant had not produced any evidence of income from private practice, such as income tax returns or professional receipts, and therefore set aside the award of Rs.6,60,000/-. Regarding loss of income due to absence from duty, the High Court noted that the claimant had been paid his salary during the absence period and that the Tribunal had not deducted the amount paid by the employer. The High Court reduced the award from Rs.3,66,586/- to Rs.1,83,293/-, being half of the amount, as the claimant had not proved any loss beyond the salary paid. The High Court upheld the award of Rs.1,44,808/- for medical expenses as there was no evidence of reimbursement. The appeal was partly allowed, reducing the total compensation from Rs.11,71,394/- to Rs.3,28,101/-.

Headnote

A) Motor Accident Claims - Compensation for Loss of Income - Double Counting - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs.6,60,000/- for loss of income from private practice and Rs.3,66,586/- for loss of income due to absence from duty. The High Court found that the claimant had not produced any evidence of income from private practice and that the award for loss of income due to absence from duty already covered the period of treatment. Held that the award for loss of income from private practice was without evidence and the award for loss of income due to absence from duty was excessive as it included the same period. (Paras 3-6)

B) Motor Accident Claims - Compensation for Medical Expenses - Reimbursement by Employer - Section 166 Motor Vehicles Act, 1988 - The Tribunal awarded Rs.1,44,808/- towards medical expenses. The Insurance Company contended that the claimant had been reimbursed by his employer. The High Court noted that the claimant had not produced evidence of reimbursement and upheld the award. (Para 7)

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Issue of Consideration

Whether the Tribunal erred in awarding compensation for loss of income from private practice and loss of income due to absence from duty without proper evidence and whether there was double counting.

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Final Decision

Appeal partly allowed. Award of Rs.6,60,000/- for loss of income from private practice set aside. Award of Rs.3,66,586/- for loss of income due to absence from duty reduced to Rs.1,83,293/-. Total compensation reduced from Rs.11,71,394/- to Rs.3,28,101/-. No order as to costs.

Law Points

  • Motor Accident Claims
  • Compensation for Loss of Income
  • Double Counting
  • Evidence of Income
  • Section 166 Motor Vehicles Act
  • 1988
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Case Details

2026 LawText (BOM) (07) 47

First Appeal No. 157 of 2015

2026-07-07

Jitendra Jain

Ms. Yogita Deshmukh Chitnis for the Appellant, Mr. Shrishailya Deshmukh for the Respondents

Bajaj Alliance Insurance Co. Ltd.

Rohidas Ambadas Chavan and Ramesh Marte Sonawale

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Nature of Litigation

Appeal against award of compensation by Motor Accident Claims Tribunal

Remedy Sought

Insurance Company sought reduction of compensation awarded to claimant

Filing Reason

Insurance Company challenged the quantum of compensation awarded for loss of income from private practice and loss of income due to absence from duty

Previous Decisions

Motor Accident Claims Tribunal, Thane awarded Rs.11,71,394/- to claimant on 4th July 2012

Issues

Whether the Tribunal erred in awarding Rs.6,60,000/- for loss of income from private practice without evidence? Whether the Tribunal erred in awarding Rs.3,66,586/- for loss of income due to absence from duty when claimant had been paid salary?

Submissions/Arguments

Appellant argued that there was no evidence of income from private practice and that the award for loss of income due to absence from duty was excessive as claimant had been paid salary. Respondent argued that the Tribunal had correctly assessed compensation based on evidence.

Ratio Decidendi

In motor accident claims, compensation for loss of income must be based on evidence. If the claimant has been paid salary during absence, the loss is only the amount not reimbursed. Double counting of loss of income from different sources for the same period is not permissible.

Judgment Excerpts

The main contention of learned counsel for the Insurance Company is with regard to Rs.6,60,000/- awarded towards loss of income from private practice and Rs.3,66,586/- awarded towards loss of income due to absence from duty. The Tribunal refers to the evidence of Ms. Usha Kanchan and comes to a conclusion that during the 11 months period when the claimant did not attend his duties, he is entitled for loss of income due to absence from duty.

Procedural History

The Motor Accident Claims Tribunal, Thane passed an order on 4th July 2012 awarding Rs.11,71,394/- to the claimant. The Insurance Company filed First Appeal No. 157 of 2015 before the High Court of Bombay challenging the award. The appeal was taken up for final hearing by consent on 7th July 2026.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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