Pay compensation based on future income even if the deceased is not earning at the time of death in the accident

New delhi date. 21

The Supreme Court in its landmark judgment has stated that the heirs of the deceased are entitled to compensation on the basis of their probable future income even if the deceased has no income at the time of death in the accident. The apex court has said that it should not be decided that the future income of the deceased will remain the same and there will be no increase or change in his income.

The son of the person claiming compensation in this case died in a Raj accident on September 17, 2016. At the time, the deceased was in his third year of Bachelor of Engineering. The lower court of Madhya Pradesh, i.e. the Motor Accident Claims Tribunal, had directed to pay a total compensation of Rs 15 lakh 4 thousand. The ruling was challenged by the Railways and the Central Government in the High Court.

The Gwalior bench of the Madhya Pradesh High Court had reduced the amount of compensation to Rs 5 lakh 10 thousand. When determining the amount of compensation, the income of the deceased was assessed on the basis of minimum wage of five thousand rupees. The High Court judgment was challenged in the Supreme Court.

The apex court said the deceased was academically qualified and his future was bright considering his family background. As a result, his income is not commensurate with the minimum wage. The Supreme Court had fixed his income at Rs 10,000. The apex court also rejected the Centre's argument that future potential income should not be taken into account when determining compensation.

The apex court further said that it should not be assumed that the income of the deceased will be fixed and will not increase. A bench headed by Justice MR Shah of the apex court, after considering all the issues, has finally ordered to pay a total compensation of Rs 15 lakh 6 thousand at the rate of seven per cent.

"We believe that if a person is not employed at the time of death, compensation should be paid to his / her family in view of his / her possible future income," the apex court said.