VIJAYAWADA: The Andhra Pradesh High Court has ruled that future income prospects must be considered while calculating compensation in motor accident cases, in addition to the deceased person’s fixed salary. It also clarified that the multiplier for determining compensation should be based on the age of the deceased and not that of his mother.
Justice Alapati Giridhar delivered the ruling while allowing an appeal filed by the family of a 21-year-old security guard who died in a road accident. The judge enhanced the compensation awarded by the Motor Accident Claims Tribunal from Rs 3.85 lakh to Rs 7.74 lakh.
The court observed that a 40% addition towards future income prospects should be made to the deceased’s monthly income in accordance with the Supreme Court’s judgment in National Insurance Company Limited vs. Pranay Sethi.
According to the case details, Uyyala Nagamunireddy of Anantapur district died in a road accident on January 2, 2009, while accompanying his father to an agricultural field. Police registered a case in connection with the accident. Nagamunireddy was working as a security guard with G4 Security Services (India) Private Limited in Hyderabad and was earning a monthly salary of `4,238.