Credible Income Proof cannot be Overlooked: SC restores ₹60 lakh in Road Accident Case

Recently, the Supreme Court restored and enhanced compensation to ₹60 lakh for the widow and minor daughter of a road accident victim, overturning a Madhya Pradesh High Court order that had drastically reduced the award to ₹9 lakh. The Court clarifies that credible evidence of income cannot be disregarded arbitrarily, especially in compensation claims where financial security of dependents is at stake.

The case stemmed from a fatal road accident involving a skilled operator of heavy machinery, whose family approached the Motor Accident Claims Tribunal seeking compensation based on his monthly earnings. The Tribunal accepted the claim and awarded ₹52 lakh with interest. However, the insurance company challenged the award before the High Court, arguing that the income was not sufficiently proven.

Accepting this contention, the High Court treated the deceased as an unskilled worker and significantly reduced the compensation. Aggrieved by this steep reduction, the victim’s family approached the Supreme Court, contending that the employer’s testimony and salary certificate already on record adequately established the deceased’s earnings.

The Apex Court found merit in the claimants’ arguments and held that the High Court erred in disregarding reliable evidence without justification. Emphasising the evidentiary value of employer testimony and salary records, the Court observed that such material “constituted reliable evidence” and ought not to have been ignored. It further noted that categorising a heavy machinery operator as an unskilled worker was untenable.

Finding the reduction arbitrary, the Court set aside the High Court’s order and restored the compensation, enhancing it to ₹60 lakh. The insurance company was directed to release the amount forthwith and submit compliance.

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