No Direct Link Between Academic Marks & Earning Capacity: Bombay High Court Enhances Accident Compensation For Deceased Student's Family

Just because a student scores average or below average marks does not mean s/he would not be able to earn well after becoming a professional and thus there cannot be any justification to claim any 'direct connection' between the marks obtained and the potential to earn in future, held the Bombay High Court recently while enhancing compensation in a Motor Vehicle Accident matter. Single-judge Justice Milind Sathaye enhanced compensation to the family of a third year BHMS (Homeopathy) student from Rs 21.93 lakh to Rs 46.06 lakh after noting that the Motor Accidents Claim Tribunal (MACT) wrongly assessed the deceased's income to be Rs 20,000 per month. The judge noted that the Tribunal held that since the deceased in the case was a below average student and had obtained less than 50 per cent in the last exams, it would be exaggeration to hold that by running a homeopathy clinic he could have earned Rs 40,000 and therefore held his probable income to Rs 20,000.In the present case, though it has come on record that the deceased was third year BHMS (homeopathy) student, who has scored less than 50%, it cannot be assumed that the deceased could not have earned well as a future homeopathy doctor, the judge said."In my view, such direct connection between 'marks obtained during academics' and 'potential to earn after becoming a professional' can not be justified. 'Academic excellence' is different and 'ability to earn as a professional' is different. Just as it is true that, academically excellent student may or may not earn well, it is also equally true that academically average or even below-average student may earn very well in practice or profession. What is necessary to be considered is that a student aspiring to become a homeopathy doctor, who had reached third year of the concerned degree course, was lost in the accident. Therefore the reason based on which the amount is reduced is found unjustifiable," Justice Sathaye held in the order pronounced on March 16.The reasonable guess work attached to reality, the judge emphasised, is both necessary and permitted based on facts and circumstances of each case.As per the facts of the case, the deceased (then 23 years old) died in an accident while he was riding his bike on November 7, 2014 after being dashed by a moving truck. The judge noted that the deceased homeopathy doctor, used to live in Miraj City in Sangli district. "Deceased could have completed his homeopathy course and started practice in Miraj City or elsewhere as per his choice and resources. Considering the overall background of the Claimants' family and the fact that deceased was a student of medical profession of homeopathy, partial enhancement needs to be granted to the extent of Rs.30,000 per month," the judge held. With this, the bench enhanced the compensation from Rs 21.93 lakhs to Rs 46.06 lakhs.Appearance:Advocates Akshay Kulkarni, Avesh Ghadge and Aditya Ghadge appeared for the Claimant Family.Advocates Vishwajeet Desai, Amey Mahajan and Ashok Desai represented the Insurance Company.Case Title: National Insurance Company Ltd vs Malan Anil Holkar (First Appeal 924 of 2022)Citation: 2026 LiveLaw (Bom) 135Click Here To Read/Download Judgment

No Direct Link Between Academic Marks & Earning Capacity: Bombay High Court Enhances Accident Compensation For Deceased Student's Family

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No Direct Link Between Academic Marks & Earning Capacity: Bombay High Court Enhances Accident Compensation For Deceased Student's Family

Narsi Benwal

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