Digi - Legal Insights

Insurance Company directed to pay enhanced compensation of Rs.88,000/- to parents along with interest @ 7.5% per annum.

There is no straitjacket formula for holding a persons notional income and it must be applied judiciously considering notifications from government authorities defining minimum wages.

If vehicle has been sold to an innocent buyer who has paid necessary customs duties, registration must be maintained under Section 40 of Act to protect buyer from repercussions of fraud.

Appellants are entitled to recover compensation of Rs. 2,90,400/- towards pecuniary loss from Respondents jointly and severally and order passed by Tribunal under other heads stands confirmed.

Driver of commercial vehicle, which was under 7500 Kg, was validly licensed to operate it without needing additional endorsements hence, Insurance Company is to indemnify awarded compensation to claimants and recover it from vehicle owner.

Impugned judgment passed by Tribunal is modified directing Appellant-insurance company to pay enhanced compensation of Rs.1,82,000/- to claimants along with interest @ 8% per annum from date of registration of claim petition till its realization.

In case of policy breach due to drivers lack of valid licence, insurer must first satisfy award and then recover from owner, with compensation computed including 40% future prospects and conventional heads.

Income Tax Returns are reliable statutory evidence for assessing deceaseds income, and compensation cannot be reduced merely because the return was filed after the accident.

In absence of evidence of contributory negligence by motorcyclist, entire liability rests on rash and negligent Alto driver, entitling claimants to full compensation.