Court rules against compensation for alleged loss of income due to insufficient evidence
In a significant ruling, the Bombay High Court has overturned the decision of the Motor Accident Claims Tribunal, Thane, which had awarded substantial compensation to Rohidas Ambadas Chavan, a government doctor, for alleged loss of income following a motor accident. The court, presided over by Justice Jitendra Jain, delivered the verdict on July 7, 2026, in the case of Bajaj Alliance Insurance Co. Ltd. v. Rohidas Ambadas Chavan.
The appeal by Bajaj Alliance Insurance Co. Ltd. challenged the Tribunal's decision that had awarded Chavan Rs. 11,71,394 in compensation. The insurance company specifically contested the amounts of Rs. 6,60,000 for purported loss of income from private practice and Rs. 3,66,586 for loss of income due to absence from duty.
Justice Jain, upon reviewing the evidence, found that the Tribunal had erred in awarding the compensation for loss of income due to absence from duty. The judgment highlighted that the claimant had, in fact, received his salary during the leave period, a fact that the Tribunal had failed to acknowledge. The court noted, "Awarding of compensation on that account is based on a material which is contrary to the facts on record."
Regarding the compensation for alleged loss from private practice, the court found no documentary evidence supporting the claimant's assertion that he had a thriving private practice. Justice Jain remarked on the absence of any documents or compliance with government regulations that would substantiate such a claim. The judgment emphasized that a welfare legislation cannot be exploited for profiteering without concrete evidence.
The court also dismissed the reliance on a previous Madras High Court decision, stating that the onus was on the claimant to prove his claims with adequate evidence. Consequently, the High Court quashed the compensation awarded by the Tribunal for both claims, ordering the refund of any deposited amounts with interest.
This judgment underscores the importance of substantiating claims with evidence and compliance with statutory requirements, especially in cases involving welfare legislation.
Bottom line:-
Motor Accident Claims Tribunal - Compensation awarded for loss of income due to absence from duty and private practice quashed in absence of evidence supporting the claims.
Statutory provision(s): Motor Accident Claims Tribunal, Evidence Act, Welfare Legislation
Bajaj Alliance Insurance Co. Ltd. v. Rohidas Ambadas Chavan, (Bombay) : Law Finder Doc id # 2936440
