NEW DELHI: In a verdict intended to provide "just" compensation to victims of road accidents, the Supreme Court ruled on Tuesday that compensation will be based on the future prospects of a deceased person rather than only loss of present income.
A five-judge bench comprising Chief Justice Dipak Misra and Justices A K Sikri, A M Khanwilkar, D Y Chandrachud and Ashok Bhushan framed guidelines for making an estimate of future prospects mandatory, irrespective of whether the victim had a permanent job or was self-employed. The amount under the head of future prospects has been capped at 50% of income in case of a permanent job and 40% in case of self-employed or a fixed salary job (where there is no provision for revision).
The ruling settles the controversy in the light of contradictory verdicts by different SC benches.
It also fixed compensation under the conventional heads of loss of estate, loss of consortium (deprivation of benefits of a family relationship) and funeral at Rs 15,000, Rs 40,000 and Rs 15,000, respectively. This is to be enhanced at the rate of 10% every three years.
"To follow the doctrine of actual income at the time of death and not to add any amount with regard to future prospects to the income for the purpose of determination of multiplicand would be unjust.
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