Category: Accident

Motor Vehicles Act, 1988 — Sections166, 168 — Compensation — Assessment of annual income of a self-employed deceased (wholesale grocery business) — Two ITRs filed after the death of the deceased excluded by the High Court altogether from the assessment of income — Held, following the principles in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], ITRs filed post-death call for closer scrutiny with reference to surrounding financial statements, since income may be inflated in such returns, but such returns are not to be excluded outright merely for being filed post-death — In the absence of the benefit of such surrounding financial statements on record, and it being inexpedient at this stage to remand the matter, annual income fixed with reference to the nature of the deceased’s wholesale grocery business at Rs.3,25,000 — Compensation recomputed applying 40% addition for future prospects (age 28 years), 1/4th deduction for personal expenses, and a multiplier of 17, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.60,79,550 (as against Rs.15,36,560 awarded by the Tribunal and Rs.38,40,850 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.

SUPREME COURT OF INDIA DIVISION BENCH SMT. REKHA AND OTHERS Vs. DINESH PORWAL AND OTHERS ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ. ) Civil Appeal No….of 2026…

Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of a self-employed deceased (Insurance Agent) from Income Tax Returns — High Court had averaged the last four ITRs on record — Held, erroneous — Following the principles laid down in Rashmirekha Tripathy and Anr. v. The Branch Manager (Legal Claims), Sriram General Insurance Company Limited and Ors. [C.A. @ SLP(C) No.27220 of 2024, 2026 INSC 661], for a self-employed person the average of up to the previous three years’ ITRs, not four, is the appropriate reference point — A performance-linked spike in the income of an Insurance Agent in a particular year does not justify reaching back to an additional, earlier ITR to dilute that spike — On the facts, taking the average of the income for AY 2015-16 (Rs.4,03,180), AY 2016-17 (Rs.9,59,665) and AY 2017-18 (Rs.7,00,559), annual income assessed at Rs.6,87,802 — Compensation recomputed applying 25% addition for future prospects (age 49 years), 1/4th deduction for personal expenses, and a multiplier of 13, together with conventional heads (loss of estate, funeral expenses, consortium) — Total compensation enhanced to Rs.87,09,282 (as against Rs.49,77,000 awarded by the Tribunal and Rs.76,09,500 awarded by the High Court), with interest as awarded by the Tribunal — Appeal allowed.

SUPREME COURT OF INDIA DIVISION BENCH RAJANI AND OTHERS Vs. MUKESH AND OTHERS ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ. ) Civil Appeal No…of 2026 (Arising out…

Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.

2026 INSC 661 SUPREME COURT OF INDIA DIVISION BENCH RASHMIREKHA TRIPATHY AND ANOTHER Vs. THE BRANCH MANAGER (LEGAL CLAIMS), SRIRAM GENERAL INSURANCE COMPANY LIMITED AND OTHERS ( Before : Sanjay…

Motor Vehicles Act, 1988 — Section 168 — Notional income of skilled worker — Carpenter — Assessment — The appellant, a carpenter aged 38 years, suffered amputation of his right leg below the knee in a road accident in November 2004 — The Claims Tribunal assessed his monthly income at Rs. 3,000/- and the High Court enhanced it to Rs. 5,000/- relying on minimum wages. Held — A carpenter is a skilled artisan who works with precision and manual dexterity — His income cannot be equated with that of an unskilled worker — Where the appellant’s unrefuted evidence showed earnings of Rs. 8,000/- to Rs. 10,000/- per month, and a skilled job always has the potentiality to fetch higher income, the High Court erred in restricting the figure to Rs. 5,000/- — Considering the date of accident, decisions in comparable cases and the fact of the appellant being a skilled worker, his notional monthly income is assessed at Rs. 9,000/- per month.

2026 INSC 656 SUPREME COURT OF INDIA DIVISION BENCH SHANKAR DUTT Vs. UNITED INDIA INSURANCE CO. LTD. AND OTHERS ( Before : Ujjal Bhuyan and N.V. Anjaria, JJ. ) Civil…

Motor Vehicles Act, 1988 — Section 166 and 140 — Compensation for death in motor vehicular accident — Negligence — Truck stationed on road at night without warning lights or indicators — Wagon-R car collided from behind — Held, truck driver was negligent in leaving the vehicle unattended on the road without adequate precautionary measures, which was the proximate cause of the accident.

2026 INSC 653 SUPREME COURT OF INDIA DIVISION BENCH THE ORIENTAL INSURANCE COMPANY LIMITED Vs. KALU RAM AND OTHERS ( Before : Prashant Kumar Mishra and N.V. Anjaria, JJ. )…

Motor Vehicles Act, 1988 — Section 165 and 166 — Liability for injuries sustained due to falling tree branch — Injuries caused by falling tree branch while vehicle was stationary under the tree during rain — Held, not an accident “arising out of the use of a motor vehicle” as the motor vehicle did not play an active role. [

2026 INSC 637 SUPREME COURT OF INDIA DIVISION BENCH THE COMMISSIONER, BRUHAT BANGALORE MAHANAGARA PALIKE Vs. K.K.UMESH KUMAR AND OTHERS ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ.…

Motor Vehicles Act, 1988 — Section 168 — Compensation — Death of homemaker — New head of ‘Loss of Domestic Care’ — Basis and quantum — The conventional method of computing compensation upon the death of a homemaker suffers from an inherent disadvantage — Notional income, as assigned by earlier decisions, fails to capture the economic, emotional and managerial contributions that a homemaker makes to the household and to nation-building at large — In recognition of the multifarious yet unquantified roles of a homemaker — (i) contribution towards smooth functioning of the household; (ii) loss of maternal support to children; and (iii) loss of spousal/parental support — a composite sum of Rs. 30,000/- per month shall be added under the head ‘Loss of Domestic Care’ — This sum shall serve as the stand-in monthly income where the homemaker has no conventional monetary income — It shall be revised cumulatively by 10% every three years — Where the homemaker is part of the paid workforce, this head shall be in addition to the proved monthly income.

2026 INSC 634 SUPREME COURT OF INDIA DIVISION BENCH SHISHU PAL @ SHISH RAM AND OTHERS Vs. SURJEET AND OTHERS ( Before : Sanjay Karol and Nongmeikapam Kotiswar Singh, JJ.…

Penal Code, 1860 (IPC) — Sections 279, 304A — Motor Vehicles Act, 1988 (MV Act) — Sections 134, 187 — Rash and negligent driving causing death — Driver acted on conductor’s signals for stopping and starting the bus — Driver cannot be held negligent when following conductor’s instructions — Death could be due to passenger’s own lack of care while alighting — Driver acquitted.

2026 INSC 565 SUPREME COURT OF INDIA DIVISION BENCH MOHAMMAD HANIF JAINUM KHALIFA Vs. THE STATE OF KARNATAKA ( Before : Prashant Kumar Mishra and N.V. Anjaria, JJ. ) Criminal…

Motor Vehicles Act, 1988 — Section 166 — Claim for compensation — Deduction of Mediclaim benefits — Motor Accidents Claims Tribunal — Award of compensation — Mediclaim policy is a contract of insurance purchased by an individual to cover uncertainties of life, with no specific accidental coverage — Compensation under Motor Vehicles Act is a statutory remedy arising from negligence and injury — Mediclaim reimbursement is a contractual benefit independent of the Motor Vehicles Act claim — Deduction of Mediclaim benefits would denude claimant of benefits from premiums paid and unduly benefit insurer of offending vehicle — Compensation awarded under Motor Vehicles Act is a beneficial legislation intended to put the injured in the position as if the accident had not occurred — Medical expenses claimed and paid under Mediclaim are not deductible from compensation awarded by the Tribunal under the Motor Vehicles Act — These two stand on different footing; one is statutory, the other is contractual.

2026 INSC 498 SUPREME COURT OF INDIA DIVISION BENCH NEW INDIA ASSURANCE COMPANY LIMITED Vs. DOLLY SATISH GANDHI AND ANOTHER ( Before : Sanjay Karol and Vipul M. Pancholi, JJ.…

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Motor Vehicles Act, 1988 — Sections 166, 168 — Compensation — Assessment of annual income of deceased/claimant on the basis of Income Tax Returns — Whether the ITR of the previous year alone, or the average of the previous two/three years, is to be taken — Held, no hard and fast formula governs computation of annual income; ITRs, being statutory documents, are an important reference point, but a bifurcation must be made between salaried and self-employed individuals — (i) For salaried individuals, the ITR of the previous year alone ordinarily suffices, since the financial impact of a promotion or salary revision is best reflected in that year’s return; where the deceased had not completed a year in a promoted position, or had not filed a return for that period, the Court may rely on the promotion letter and other corroborative financial statements; (ii) For self-employed persons/those running their own business, the average of the ITRs for up to the previous three years is to be taken as the reference point, having regard to the inherent income fluctuation in such professions — In assessing self-employed income, the surrounding circumstances to be additionally considered include: (a) the nature of the business (including geography and category); (b) its growth pattern and the impact of the death on the business; (c) its potential/future growth, including capital-intensive businesses profitable only at scale; (d) the possibility of negative income in initial years not reflecting the true financial standing; and (e) any other relevant factor — The date of filing of an ITR is also relevant, since income may be inflated after the death/injury; such returns call for closer scrutiny against surrounding financial statements, though they are not to be excluded outright merely for being filed post-death, if adequately supported.