How Is Compensation Calculated In Motor Accident Claims?

Written by:

Adv Shifa

Updated: 09-03-2024

Guidelines The Supreme Court rules on the determination of future possibilities for victims of car accidents.

A five-judge bench of the Supreme Court, hearing the case 'National Insurance Company Limited v Pranay Sethi', agrees with the opinion on the standardization of income addition against prospects in line with Article 168 of the Motor Vehicle Act 1988. It further stated that the concept of "fair compensation" should be defined based on fairness, rationality, and acceptable legal norms, as such a provision "can never be arithmetic exactitude."

It would be unreasonable to use the doctrine of real income at the time of death to establish the multiplicand and not to include any amount of prospects in the income. The determination of income in the calculation of remuneration must take into account prospects so that the method falls within the scope of just compensation as specified in Section 168 of the Act.
When the deceased had steady work and was under the age of 40, 50% of their actual salary was added to their income about their prospects. If the deceased was 40 to 50 years old, the increment should be 30%. If the deceased was between the ages of 50 and 60, the additional amount must be 15%. Actual salary should be read as actual salary minus taxes.
If the deceased was self-employed or received a fixed salary, the warrant shall include an additional 40% of the income if the deceased was under the age of 40. The needed calculating technique should be 25% when the deceased was between the ages of 40 and 50 years, and 10% when the deceased was between the ages of 50 and 60.

In cases of motor accidents, you can contact to lawyer insurance. Attorneys for auto insurance claims in India play an important role in assisting those injured in car accidents to navigate the legal procedure, safeguard their rights, and obtain compensation for their injuries and losses. Accident victims can seek legal advice and support from a car insurance lawyer. They inform the harmed party about their rights and options, allowing them to make informed decisions. You can even take no injury errors and omission insurance.

Lawyer malpractice insurance conducts investigations into the circumstances surrounding the event to assess culpability. They gather information, such as accident reports, witness accounts, and medical records, to make a compelling case.

If you are searching for a car insurance claim lawyer near me, you can contact Sharks of Law. The Sharks of Law educates individuals about legal matters and promotes critical thinking. We provide Legal Consultation. You can find a lawyer here.