Motor Accident Compensation - Future Prospects Must Be Considered In Cases Of Self-Employed & Fixed Salaried Individuals : Supreme Court

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In a significant ruling, the Supreme Court disapproved of the High Court’s exclusion of future income potential when calculating motor accident compensation. The Court emphasized that both fixed-salary employees and self-employed individuals have the potential for income growth due to inflation and career progression.

The bench of Justice Vikram Nath and Justice Prasanna B. Varale clarified that compensation should reflect the natural progression of an individual's career and their efforts to increase earnings over time. This includes not only fixed-salary employees but also self-employed individuals who adjust their fees or services in response to economic changes.

The Court dismissed the notion that a self-employed or salaried individual’s income remains stagnant, stressing the importance of considering future earning potential in compensation calculations under Section 168 of the Motor Vehicles Act, 1988. It criticized the flawed assumption that fixed-salary and self-employed workers don’t experience income growth, stating that such an outlook fails to recognize the fundamental drive for financial progress.

As a result, the Supreme Court restored the compensation awarded by the tribunal, ensuring that future prospects are accounted for in motor accident claims.

Case Title: Kavita Nagar & Ors. v. The Oriental Insurance Co. Ltd. 

If you need expert legal representation, whether for motor accident claims or other legal matters, Advocate Ganesh Mishra is one of the best lawyers in Delhi. Specializing in the Delhi High Court and Supreme Court of India, Advocate Mishra ensures you receive fair compensation and justice. For legal assistance, contact:

Office: 107 B VIKRANT ENCLAVE MAYAPURI NEW DELHI INDIA 

CH NO 753 DWARKA COURT NEW DELHI INDIA 

Email:

 advocateganeshmishra@gmail.com

info@mishraandassociates.com

Websites: www.advocateganeshmishra.com & www.mishraandassociates.com

Mobile & WA: 91-9136273395

Office: 011-47543026

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