Finance Minister Nirmala Sitharaman proposed exempting interest on motor accident compensation from income tax, removing TDS obligations. The Budget move ensures MACT-awarded interest to individuals remains tax-free, offering relief to accident victims and simplifying compliance under the Income-tax Act.
Thane, May 12 – The Motor Accident Claims Tribunal (MACT) in Thane district of Maharashtra has ordered a compensation of Rs 22.3 lakh to be paid to five members of a family who were badly injured in a road accident that took place in November 2018 on the old Mumbai-Pune Highway. The order was passed by MACT Member S N Shah on May 3, and a copy of the judgment was made available on Monday.
The Bombay High Court ruled that deducting Mediclaim amounts from medical expenses compensation is not permissible. The court emphasized that insurance payouts and compensation serve different legal purposes. It rejected an insurance company’s argument that medical costs were already covered under the policy. The ruling reinforces the rights of claimants to receive full medical compensation without deductions.
The Supreme Court criticized former Punjab & Haryana High Court judge Justice Rekha Mittal for significantly reducing motor accident compensation. It restored the original Rs.29 lakh compensation set by the MACT, questioning why she had slashed it to just Rs.3 lakh. The bench noted that Justice Mittal had a pattern of lowering compensation in such cases.
The Supreme Court clarified that it does not have the authority to set speed limits on roads, leaving this task to government experts. It overturned a Madras High Court decision that reduced a speed limit and emphasized that courts cannot change speed regulations in response to accidents. Speed limits are defined by the Motor Vehicles Act, 1988 and MoRTH guidelines.
Today, On 7th August, The Supreme Court ruled that attempting to overtake a vehicle does not constitute rashness or negligence. The claimant, whose wife died in an accident while overtaking, was initially deemed partly at fault. However, the court increased the compensation, stating that the over-speeding tractor was driven rashly and negligently.
The Punjab and Haryana High Court ruled that drivers are not at fault in collisions with roadside parked vehicles that lack parking lights. This decision highlights the importance of proper vehicle illumination to prevent accidents. The court’s ruling aims to clarify liability in such incidents, promoting safer road practices. In a landmark ruling, the Punjab […]