Supreme Court Cracks Down on Wage Discrepancies in Motor Accident Claims
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The Supreme Court has directed all states and Union territories to provide a centralized database of minimum wage notifications to expedite motor accident claims. The court noted that the lack of uniform and accessible data has made it challenging to determine compensation, often leading to disputes and inconsistent outcomes. The bench, led by justices Sanjay Karol and N Kotiswar Singh, highlighted that the current system hampers judicial determination, necessitating avoidable litigation on factual issues. Minimum wages play a crucial role in assessing compensation, particularly in cases involving vulnerable individuals such as self-employed persons, daily wage earners, and homemakers. To address this, the court ordered the chief secretaries of all states and UTs to submit their respective compilations of minimum wage notifications within 12 weeks. The authorities must electronically furnish periodically revised notifications to keep the latest authoritative documents accessible to the judiciary. The court's directions come as a significant relief to claimants, who often struggle to determine the correct minimum wage applicable on the date of an accident. This issue has been a long-standing concern, with the Supreme Court previously emphasizing the need for realistic income assessment based on contemporary economic conditions. In a recent judgment, the bench allowed an appeal arising from a motor accident in 2013, noting that the calculation of notional income for the deceased child and the award under conventional heads were legally flawed. The court recalculated the compensation, awarding a total of ₹11,96,068, and directing that interest be paid from the date of filing of the claim petition. The Supreme Court's move aims to bring much-needed clarity and consistency in motor accident claims, ensuring that claimants receive fair compensation in a timely manner.
