SC to Lay Guidelines on Compensation for Road Accidents 

The MACT deal with claims relating to loss of life, property and injury cases resulting from motor accidents.

2 min read
The SC slammed the Election Commission for retracting from its earlier position supporting a plea for lifetime ban on convicted lawmakers from contesting elections.(Photo: Reuters)

The Supreme Court on Tuesday said that it would lay down guidelines over calculation of compensation considering future prospects of people killed in road accidents.

A Constitution bench of five-judge headed by Chief Justice Dipak Misra reserved verdict on the bunch of 27 petitions, including one filed by the National Insurance Company Limited challenging an order of the Punjab and Haryana High Court.

The bench, which also include Justice AK Sikri, Justice AM Khanwilkar, Justice DY Chandrachud and Justice Ashok Bhushan, observed that there is a need to lay down principles after considering future prospects of employment in private sector and self-employed people in awarding accidents claims.


The court, dealing with the questions whether principle of future prospect applied on private employees and self-employed people or not, observed that lawyers, who are generally self employed, mostly rise in the career during the age of 50 to 70 years.

It noted the same criteria applies for the future career prospects of chartered accountants and doctors.

The court said it would mull over the issue whether "some standard threshold" amount can be fixed under the head of "future prospects" while awarding compensation to the dependents of the accident victims under the Motor Vehicles Act.

Citing an example of how law teachers, after retirement, get jobs in private law colleges, the court said additional evidence may be led before the Motor Accident Claim Tribunal (MACT) while seeking enhancement on the ground of future prospects.

The MACT deal with claims relating to loss of life, property and injury cases resulting from motor accidents. The compensation is awarded to the victims by using the methodology provided in the statute itself.

While claiming compensation, victims have to cite documents related to age and income.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!