26 April 2024 Civil Appeals >> Civil & Consumer Law  

The heirs of a diamond agent who died in a road accident have been awarded increased compensation by a court in Gujarat. The case highlights the importance of proper documentation in determining compensation amounts for accident victims.

Background:

The deceased, a 55-year-old diamond agent, was struck by a bus while riding his moped. His heirs filed a claim with the Motor Accident Claims Tribunal (MACT) seeking compensation for loss of income and other damages. However, the MACT determined the deceased's income based on minimum wage, resulting in a lower compensation amount.

Appeal Focuses on Income Proof:

The heirs appealed the decision, arguing that the MACT should have considered the deceased's Income Tax Returns (ITRs) as proof of his actual income, which was significantly higher than the minimum wage. They also presented bank statements to support their claim.

Court Rules in Favor of Heirs:

The court agreed with the heirs. The judgment acknowledges Income Tax Returns as statutory documents and a reliable indicator of income. Based on the ITRs (specifically the 2020-2021 document showing an annual income of Rs. 3,15,530), the court calculated a future loss of income and increased the overall compensation by Rs. 10,93,279.

Compensation Distribution Plan Outlined:

The court also specified how the additional compensation should be distributed. Half will be given to the heirs immediately after verifying their identities, following the proportions determined by the MACT. The remaining half will be invested in a fixed deposit for three years, with the accrued interest added. After three years, this amount will be distributed to the heirs without further court involvement.

Importance of Documentation:

This case emphasizes the importance of maintaining proper financial records. Having clear documentation like ITRs can significantly impact the compensation awarded to families of accident victims.