Motor Vehicles Accident Compensation: Important Judgments Of 2021[Supreme Court & High Courts]

Supreme Court Decisions 1. Motor Accident Compensation- Future Prospects Can Be Granted Even In Cases Pertaining To Notional IncomeA bench comprising Justices NV Ramana, S. Abdul Nazeer and Surya Kant in Kirti v. Oriental Insurance Company Ltd. held that future prospects can be granted even in cases pertaining to notional income. The court observed thus while disposing an appeal arising out of Motor Accident Compensation Claim filed by heirs of a deceased couple who died in an accident. In this case, the Motor Accident Claims Tribunal awarded a total sum of Rs 40.71 lakhs for both deceased to the claimants. Partly allowing the appeal filed by Insurance Company, the High Court reversed the addition of future prospects.2. Motor Accident Compensation: Multiplier Method Has To Be Applied For Future Prospects And Advancement In Life And CareerA Bench of Justices Sanjay Kishan Kaul and Hemant Gupta in Karthik Subramanian v. B. Sarath Babu observed that, while computing motor accident compensation, the multiplier method has to be applied for future prospects and advancement in life and career."In our view, this issue is no more res integra in view of Sandeep Khanduja's case (supra) and Erudhaya Priya's case (supra) opining that the multiplier method has to be applied for future prospects and advancement in life and career. Thus, the same principle would have to apply and learned counsel for insurance companies cannot seriously contend to the contrary," the bench observed in the facts of the case.3. "Insurer Should Deposit Award In Bank Account Maintained By MACT By RTGS/NEFT': SC Issues Directions For Uniform Procedure In Granting Motor Accident CompensationThe Supreme Court in Bajaj Allianz General Insurance Company Private Ltd. v. Union of India issued a slew of directions regarding the process of disbursement of compensation as well as expediting the matter before the MACTs across the country. According to these directions, a jurisdictional police station has to submit an Accident Information Report about the accident to the tribunal and insurer within the first 48 hours either over email or a dedicated website. They shall also submit a detailed accident report to them within three months.4. Breath Analysis Or Blood Test Not Necessary For Insurer To Reject Claim On Ground Of Drunken DrivingA bench comprising Justices UU Lalit, Indira Banerjee and KM Joseph in IFFCO Tokio General Insurance Company Ltd v. Pearl Beverages Ltd held that a breath analyzer test or blood test as contemplated under the Motor Vehicles Act is not necessary for an insurer to repudiate an accident policy claim on the ground of drunken driving. The Court held that if the insurance company is able to establish from the facts that the driver was under the influence of alcohol at the time of the accident, it will not be deprived of its right to exclude the policy benefit merely on the ground that the scientific tests for alcohol presence were not carried out.5. Motor Accident Compensation - Self-Employed Deceased Aged Below 40 Years Entitled To 40% Addition As Future ProspectsA Bench comprising CJI NV Ramana, Justices Surya Kant and Aniruddha Bose in Rahul Sharma & Anr. v. National Insurance Company Ltd & Ors. reiterated that addition of 40% income must be given towards future prospects while computing motor accident compensation if the deceased was self-employed and was aged less than aged 40 years.6. Motor Vehicles Act - Third Party Insurance Deemed To Be Transferred Along With Effective Control Over Vehicle In A Hire AgreementThe Supreme Court in Uttar Pradesh State Road Transport Corporation v. National Insurance Company Limited & Ors held that when a transport corporation hires a motor vehicle for use from its registered owner, the third-party insurance coverage will also be deemed to be transferred along with the vehicle. The person who is having the effective control and command of the vehicle will be regarded as the 'owner'. Therefore, along with the vehicle it must be deemed that the existing insurance policy also remains transferred for the period of hire, the division bench of Justices S. Abdul Nazeer and Krishna Murari noted.7. Motor Accident Compensation: Pranay Sethi Judgment Doesn't Limit Operation Of Statute Providing Greater BenefitsThe Supreme Court in New India Assurance Co. Ltd. v. Urmila Shukla has observed that the judgment in Pranay Sethi does not limit the operation of a statutory provision granting greater benefits in the matter of Motor Accident Compensation. "If a statutory instrument has devised a formula which affords better or greater benefit, such statutory instrument must be allowed to operate unless the statutory instrument is otherwise found to be invalid," the bench of Justices Uday Umesh Lalit and Ajay Rastogi observed. The Court dismissed an Insurance Company's appeal challenging the award by Motor Accidents Claim Tribunal, Allahabad of Rs.24,43,432/- was awarded with 7% interest, while considering the...

Motor Vehicles Accident Compensation: Important Judgments Of 2021[Supreme Court & High Courts]

Shruti Kakkar

Tags