Bombay HC: 'Academic Performance Cannot Be A Yardstick To Judge Student’s Future Earning Potential'
· Free Press Journal
Mumbai, March 23: Holding that academic performance cannot be a yardstick to judge a student’s future earning potential, the Bombay High Court has enhanced compensation awarded to the family of a 23-year-old homeopathy student who died in a road accident. The court observed that “academic excellence is different and ability to earn as a professional is different”.
Compensation enhanced, insurer’s plea rejected
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Justice Milind Sathaye, on March 16, partly allowed an appeal filed by the deceased Alan Holkar’s family, increasing the compensation from Rs 21.93 lakh to Rs 46.06 lakh. It dismissed the cross-appeal filed by National Insurance Company Ltd seeking a reduction in the award.
Case background and tribunal order
The case arose from a 2014 accident in which Holkar, a third-year BHMS student, died after his motorcycle collided with a truck. His mother, father, and brother had approached the Motor Accident Claims Tribunal (MACT) in Sangli seeking compensation of Rs 1.32 crore under the Motor Vehicles Act. In December 2021, the tribunal held the truck owner, driver, and insurer jointly liable and awarded Rs 21.93 lakh with 7% interest.
Insurer’s arguments rejected
Challenging the award, the insurer argued that the tribunal had overestimated the deceased’s income at Rs 20,000 per month, contending that Rs 10,000 would have been more appropriate as Holkar was a “below-average student”. It also claimed that none of the claimants were financially dependent on him.
Rejecting these arguments, the High Court said the tribunal’s approach of linking academic marks with earning capacity was flawed. “Such direct connection between ‘marks obtained during academics’ and ‘potential to earn after becoming a professional’ cannot be justified,” the court observed.
Court emphasises professional potential
Noting that Holkar was in the third year of his homeopathy degree, the court said he had a clear professional path ahead. “Academically average or even below-average student may earn very well in practice or profession,” it added.
The court emphasised that “reasonable guesswork attached to reality” must be applied in assessing future income in such cases. Considering the family’s background in Miraj and the likelihood of the deceased starting a practice, it reassessed his notional monthly income at Rs 30,000.
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The court also rejected the insurer’s claim regarding lack of dependency, noting that no evidence had been led to show that the deceased’s mother was financially independent. However, it upheld the tribunal’s decision to grant compensation only to the mother.
Accordingly, the court enhanced the compensation to Rs 46.06 lakh with 7% annual interest from the date of filing of the claim petition.
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