How to Calculate Vehicle Accident Compensation in Death Cases?

To calculate just compensation in a death case, the first thing to be done is to calculate the annual income or dependency or multiplicand, after deducting the tax. Then deduct the personal expenses and living expenses from it. The resultant amount is termed as annual income or multiplicand or dependency. For this exercise the claimant must establish the age of the deceased, the income of the deceased and the number of dependents.

Method of Calculating Compensation in Vehicle Accidents

The key judgments in regard to fixation of compensation in motor vehicle accident cases are: Sarla Verma v Delhi Transport Corporation & Anr Reshma Kumari & Ors v Madan Mohan & Anr National Insurance Co. Ltd. v Pranay Sethi & Ors The Pranay Sethi case was heard by a five-judge bench of the SC. The judgement laid down some broad guidelines for assessing the amount of compensation to be paid to the accident victims in areas where there were divergent approaches.

Police Officer is bound to file Accident Claims

When information of a road accident is received in the Police Station, the Investigation Officer (IO), who investigates the accident, shall inspect the site of the accident, take photographs / videos of the scene of the accident and the vehicles involved in the accident and prepare a site plan drawn scale to scale, indicating the lay out and width etc of the roads or places, the position of the vehicles and persons involved and such other relevant facts.

Damages an Injured can Claim in Vehicle Accidents

A person injured in a motor vehicle accident can claim two types of damages: one is non-pecuniary damages (general damages) and the other is pecuniary damages (special damages). The non-pecuniary damages (general damages) are the damages which cannot be calculated in terms of money. The Pecuniary damages are those damages which the victim has actually incurred and are capable of being calculated in terms of money.

Law relating to Compensation in Vehicle Accidents

The victims of motor vehicle accidents are eligible to get compensation, as a relief measure, under the Motor Vehicles Act, 1988 (MV Act). The M V Act lays out provision for establishment of Motor Accidents Claims Tribunal (MACT). MACT is empowered to adjudicate all claims relating to compensation in motor vehicle accidents, involving death, bodily injury or damage to property.

Encroachment on Roads Impermissible in Law

In S. Rajaseekaran v Union of India [(2018) 13 SCC 516] the SC held that all States and Union Territories are expected to implement the National Road Safety Policy with all due earnestness and seriousness. In Suo motu v State of Kerala [2022 (7) KHC 185 (DB)], the HCK has issued similar directions to the authorities in the context of Sabarimala season. The judgement reminds the state government to implement the National Road Safety Policy with due earnestness and seriousness as the Supreme court had said in the above said S. Rajaseekaran judgement.