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Supreme Court on Road Accident Victims

Road Accident Victims:

The Supreme Court has held that an extra 40% should be added to the income of deceased road accident victims who are aged below 40 years and are self-employed while calculating compensation.

  • A three-judge Bench led by Chief Justice of India N.V. Ramana said the additional amount should be included in the income of the dead person as “future prospects”.
  • The judgment is significant as it recognizes self-employment as gainful employment and calls for an increase in the compensation amount accordingly.
  • Chief Justice Ramana referred to a Constitution Bench decision in National Insurance vs Pranay Sethi, which had “clearly held that in case the deceased is self-employed and below the age of 40, 40% addition would be made to their income as future prospects”.
  • The High Court had earlier held the victim ineligible for future prospects because she was self-employed.