In motor accident claims, the social status of the deceased should be taken into account when there is no clear evidence of their income : Supreme Court
The Supreme Court has reinstated an award originally granted by the Motor Accidents Claim Tribunal (MACT). The apex court expressed disappointment over the approach taken by the High Court in evaluating the evidence and reinstated the MACT's verdict.
The Court observed “It is unfortunate that in a case of the present nature, the High Court while assessing the evidence available on record, has sought to seek strict evidence with regard to the income of the deceased. In a matter of the present nature where compensation is sought and even in the absence of definite proof of the income, the social status of the deceased is to be kept in perspective where such persons are employed in unorganized sector and the notional income, in any event, is required to be taken into consideration. More so in a circumstance, where the MACT had referred to the evidence available on record and then arrived at its conclusion, the re-appreciation of evidence by the High Court is without being sensitive to nature of lis before it.”
The Supreme Court has reinstated a compensation award originally granted by the Motor Accidents Claim Tribunal (MACT) while expressing disappointment over the approach taken by the High Court in evaluating the available evidence. The case in question involved the unfortunate demise of an individual who served as the primary income earner for their family. The High Court had raised concerns by adopting a stringent stance in assessing the evidence related to the deceased's income, primarily because the claimants were unable to provide comprehensive documentation owing to the deceased's employment in the unorganized sector.
Despite these challenges, the MACT had made diligent efforts to ascertain the deceased's income and ultimately concluded that the individual worked as a skilled mechanic in a two-wheeler repair shop.
In its ruling, the Supreme Court underscored the critical importance of considering notional income, particularly when dealing with cases involving individuals employed in the unorganized sector. The Court emphasized that even in the absence of concrete evidence regarding the deceased's income, the notional income should be factored in, especially when the claimants are dependents of the deceased.
The Supreme Court criticized the High Court's rigorous approach, which demanded exhaustive evidence regarding the deceased's income and ownership of the repair shop where they worked. The Court emphasized that cases involving the unorganized sector necessitate sensitivity and a thoughtful consideration of the deceased's social and economic circumstances.
As a result, the Supreme Court set aside the judgment issued by the High Court on March 5, 2019, and reinstated the original award granted by the MACT on March 13, 2007. The Court also directed the Insurance Company to deposit the awarded amount within four weeks from the date of receiving the judgment.