Chandigarh: The Punjab and Haryana high court has upheld a Motor Accident Claims Tribunal award of Rs 38.7 lakh to a man who suffered 100% disability in a motor accident, ruling that tips earned by him while working as a waiter must be included in his monthly income when calculating compensation.Dismissing an appeal filed by United India Insurance Company Limited against a March 24, 2017, order of Chandigarh’s Motor Accident Claims Tribunal, Justice Mandeep Pannu held that tips established through evidence and shown to have been earned regularly cannot be excluded merely because they are paid by customers rather than forming part of a fixed salary.The insurer, represented by counsels Harsh Aggarwal and Parit Aggarwal, had challenged the tribunal’s assessment of the claimant’s monthly income at Rs 12,000. It argued that his salary certificate reflected an income of only Rs 8,000 and that the additional Rs 4,000 in tips was voluntary and uncertain. The claimant’s counsel, Arun Takhi, countered that tips constitute a regular source of earnings in the hospitality sector.The high court observed, “The fact that persons employed as waiters in restaurants and clubs receive tips from customers is a recognised feature of employment in the hospitality industry… The relevant consideration for determining the income of the injured is his actual and regular earnings and not merely the amount reflected in the salary certificate.”The HC referred to rulings by the Delhi high court, which upheld the inclusion of tips while determining the income of an employee in the hospitality industry for computing compensation under the Motor Vehicles Act, and the Bombay High Court, which rejected an insurance company’s contention that tips were uncertain and depended on the number of customers visiting the establishment.Noting the severe impact of the waiter’s 100% permanent disability on his future earning capacity, the high court found no error in the tribunal’s calculation and upheld the compensation award.
