Compensation and The Legal Principles

Compensation and The Legal Principles

*Motor Vehicles Act, 1988 - Liability and Compensation - "Death Case" - Accident between two vehicles - "Contributory Negligence" - "Quantum of Compensation" - "Income" and Presumptions  - "Enhancement of Compensation without cross-objection / appeal by Claimant"* - Accident occurred in the year 2008 - Insurance company argued that there are 2 vehicles involved and deduction in compensation has to be made on account of contributory negligence - Vehicle 1 in which victim was sitting and Vehicle 2 which hit the vehicle of victim - It was also argued that both vehicles were coming from opposite directions - Held, argument of insurance company has no merit and no deduction to made from compensation amount merely because two vehicles are involved or because vehicles were coming from opposite directions  - Insurance company argued that victim had not produced salary slips and there was no concrete proof of income or earnings of victim - Insurance company also argued that notional income of victim should have been taken - Held, findings of MACT on the aspect of income are justified and arguments of insurance company was rightly rejected - Appeal was filed by insurance company seeking reduction of amount and there was no cross-objection or appeal by claimant - However, applying the Judgments of Supreme Court, compensation amount was enhanced even in the absence of any cross-objection or appeal by claimant - Held, enhancement of compensation amount is permissible even when there is no cross-objection or appeal by claimant and appeal is only filed by insurance company - Rate of Interest of 9% on compensation amount cannot be considered excessive or exorbitant. - *New India Assurance Co. Ltd v. Deepali [2026] GCtR 275 (Aurangabad, Bombay)*