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Supreme Court of India 2017-11-22 partly_allowed

Hem Raj vs Oriental Insurance Co. Ltd. and Ors

Bench: 2 — Adarsh Kumar Goel

In Brief

A consolidated judgment on multiple appeals and special leave petitions concerning motor vehicle accident compensation claims. The Supreme Court affirmed that when calculating compensation, future prospects should be added to deceased's assessed income at standard rates (40% for those 40+ years old; 50% for those under 40), whether income is proven or estimated. Critically, however, these standard percentages are not absolute ceilings—if evidence shows higher future prospects were actually warranted, courts may award accordingly. The Court also clarified that proper deductions for personal expenses and income tax must be made before final compensation is calculated. Various cases were disposed of with modifications accordingly.

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Motor Vehicles Act Insurance Law Compensation Damages Future Prospects Income Assessment

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