HC doubles compensation for family of accident victim

The Bombay HC increased compensation to ₹1.20 crore for Prabin Kumar's family after his fatal road accident, up from ₹50.60 lakh.

MUMBAI: The Bombay high court (HC) on October 10 increased the compensation from ₹50.60 lakh to ₹1.20 crore awarded to the family of Prabin Kumar, who died in a road accident in Pune. The decision came on an appeal by Cholamandalam MS General Insurance Company Ltd, which contested the earlier judgement by the Motor Accident Claims Tribunal.

HC doubles compensation for family of accident victim

The accident occurred on January 16, 2014, when Prabin Kumar, 39, was severely injured in a collision with a speeding dumper truck while riding his motorcycle near Jain Temple in Bavdhan, Pune.

Witnesses reported that the dumper, travelling at high speed, lost control and collided with Kumar’s motorcycle, leading to severe injuries. Despite immediate medical attention, Prabin was pronounced dead upon arrival at the hospital. His widow, Poonam Kumar, filed a claim against the truck’s owner, Ramesh Jadhav, and the driver, who were subsequently found to be operating without a valid licence.

The Tribunal awarded Poonam ₹50,60,000 but stipulated that the Insurance Company could recover the amount from Jadhav due to breaches of policy conditions.

During the appeal, the Insurance Company- Cholamandalam MS General Insurance Co. Ltd., represented by advocate Rajesh Kanojia along with advocate Prachi Pawar, argued that the calculation failed to account for deductions regarding personal expenses and asserted that the 20% estimated for managerial loss was excessive.

Advocate Kanojia argued for a reduction in dependency claims, asserting that Prabin’s parents, Rajendra and Suman Kumar, were financially independent, relying on pensions and support from other family members. He advocated for a 50% deduction towards personal expenses, emphasising the lack of financial dependency.

In contrast, Poonam Kumar’s counsel, advocate Yogesh Pande, argued that the Tribunal’s approach was flawed. He emphasised that the entire income of Prabin, as reflected in his tax returns, should be considered for compensation.

He highlighted that Prabin was a successful businessman running M/s. Rajhans Telecom and Peripheral Services, with significant earnings from selling telecom equipment. He maintained that the business could not operate as effectively in Prabin’s absence, thus justifying the claim for full compensation for loss of income, alongside a distinct claim for managerial loss.

The court, presided over by justice MM Sathaye carefully weighed the arguments from both sides. It acknowledged that while the business had not ceased operations, the potential for reduced income due to Prabin’s absence was a valid concern.

The court opted for a balanced approach, allowing for 50% of Prabin’s average business income, calculated at ₹13,01,575 based on his income tax returns, as the basis for loss of income. Additionally, the court permitted 15% of this average income to be recognised as managerial loss, amounting to ₹1,95,236 per annum.

Furthermore, the court applied a 40% increase to account for future prospects, considering Prabin’s age and the nature of his work. The court also awarded ₹40,000 each for loss of consortium to both Poonam and Prabin’s parents, acknowledging the emotional and financial void left by his untimely death. Ultimately, the court ruled that Poonam Kumar would receive 60% of the total compensation, while Rajendra and Suman Kumar would jointly receive the remaining 40%.