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Here are some examples of case laws

related to the quantum of compensation


under the Motor Vehicles Act:

1. Sarla Verma vs. Delhi Transport


Corporation (2009): In this case, the
Supreme Court of India held that the
compensation payable to the victim of a
motor vehicle accident should be based
on a "just and reasonable" principle. The
court awarded compensation of Rs. 50
lakhs to the family of the deceased victim,
who was a 35-year-old earning member of
the family.

2. National Insurance Company Limited


vs. Pranay Sethi (2017): In this case, the
Supreme Court of India held that the
compensation payable in case of a motor
vehicle accident resulting in the death of
the victim should be computed based on
the following formula: (i) 50% of the
victim's net income for the period from
the date of the accident to the date of the
victim's retirement; (ii) loss of future
prospects of the victim; and (iii) an
amount for pain and suffering. The court
also held that the total compensation
payable should not be less than Rs. 15
lakhs.

3. Oriental Insurance Company Limited


vs. Meena Variyal (2007): In this case, the
Supreme Court of India held that the
compensation payable in case of a motor
vehicle accident resulting in permanent
disability should be based on the
percentage of disability suffered by the
victim. The court awarded compensation
of Rs. 10 lakhs to the victim who had
suffered 90% permanent disability.
These are just a few examples of the many
cases where courts have awarded
compensation under the Motor Vehicles
Act. The quantum of compensation
awarded in each case depends on various
factors and the specific facts and
circumstances of the case
How to assess quantum of compensation
in motor accident case of child death?

In the judgment in the case of Puttamma


and Ors. Vs K.L. Narayana Reddy and
Anr.. (2013)
the Court has observed that the Central
Government was bestowed with the
duties to amend Schedule-II in view of
Section 163-A(3) of the Motor Vehicles Act
1988, but it failed to do so. In view of the
same, specific directions were issued to
the Central Government to make
appropriate amendments to Schedule-II
keeping in mind the present cost of living.
In the said judgment, till such
amendments are made, directions were
issued for award of compensation by
fixing a sum of Rs. 1,00,000/- (Rupees one
lakh only) towards compensation for the
non-earning children up to the age of 5
(five) years old and a sum of Rs. 1,50,000/-
(Rupees one lakh fifty thousand only) for
the non-earning persons of more than 5
(five) years old.
Conclusion
The quantum of compensation under the
Motor Vehicles Act is an important
provision that provides relief to victims of
road accidents. The Act provides for
compensation in case of death,
permanent disablement, temporary
disablement, and minor injuries. The
compensation is determined based on
various factors such as the nature of the
injury, extent of disability, loss of income,
and the cost of medical treatment. The
Act aims to ensure that victims of road
accidents are adequately compensated
and their rights are protected.

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