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Assessment of Compensation
Case name: National Insurance Company Limited v. Pranay Sethi
In the case, the Supreme Court Bench headed by Chief Justice Dipak Misra was
hearing a reference made to the Bench in the case of National Insurance
Company Ltd. v. Pushpa & Ors.[1], in view of divergence of opinion of the
Supreme Court in the cases of Reshma Kumari & Ors. v. Madan
Mohan and Rajesh and Others v. Rajbir Singh and Others with reference to
Sections 163A and 166 of the Motor Vehicles Act, 1988 (the Act) and the
methodology of computation of future prospects.
Some of the factors on which the Bench expounded and issued guidelines
were addition of future prospects to determine the multiplicand, deduction
towards personal and living expenses (where the deceased was married and
where the deceased was a bachelor), and the selection of multiplier and also
detailed on the reasonable figures on conventional heads.
In this recent case, the core issue revolved around the scope of Section 163A of
the Motor Vehicle Act, 1988. Section 163A of MV Act provides for special
provisions as to payment of compensation on structured formula basis.
In this landmark case, one of the seminal issue was whether a driver who is
having a license to drive ‘light motor vehicle’ and is driving ‘transport vehicle’ of
that class is required additionally to obtain an endorsement to drive a transport
vehicle?
With reference to the aforesaid issue there has been a divergence of opinion and
conflict in the plethora of decisions of this Court.
However, the issue has now been settled by Three-Judge Bench by holding that
there is no requirement to obtain a separate endorsement to drive transport
vehicle. It was further stated in the case that if a driver is holding license to
drive a light motor vehicle, he can drive transport vehicle also of such
class without any endorsement to that effect.
Also See: Accident Claims – How to get compensation under Motor Vehicles Act