In a landmark ruling, the Madhya Pradesh High Court has clarified that the term “permanent job” for motor accident compensation claims includes more than just government servants. This decision broadens the scope for granting future prospects in such cases.
The court emphasised that any job where the salary is periodically increased or receives annual increments qualifies as a permanent job. This decision came in response to an appeal seeking an enhancement of the compensation awarded by the Motor Accidents Claims Tribunal (MACT) in Bhopal.
The appeal was filed by the claimant, who argued that the deceased, an assistant professor at the Corporate Institute of Science and Technology in Bhopal, held a permanent job. They contended that 15 per cent should have been added for future prospects rather than the 10 per cent awarded by the tribunal. Additionally, they argued that consortium compensation should have been awarded to all appellants, not just the first.
In contrast, the insurance company’s counsel representing the respondents argued that the deceased’s position in a private college did not qualify as a permanent job. They asserted that only government employees should be treated as holding permanent jobs for the purpose of calculating future prospects and suggested that contributory negligence in the accident should reduce the compensation amount.
The Supreme Court acknowledged that their incomes would likely increase over time due to efforts to enhance earnings and periodic salary increments. The Court also affirmed that the concept of a ‘permanent job’ extends beyond government employment. It determined that any position with periodic salary increments and revisions, such as the deceased’s role as an assistant professor, qualifies as a permanent job, and thus, the principle of future prospects should be applied accordingly.
