Punjab and Haryana High Court Enhances Compensation in Motor Accident Case

Court Modifies Tribunal's Award, Orders Additional Rs. 29.47 Lakhs with Interest to Victim's Family

In a significant judgment concerning motor accident compensation, the Punjab and Haryana High Court has enhanced the compensation awarded to the family of Samsher Singh, who tragically lost his life in a vehicular accident. The court has ordered an additional compensation amount of Rs. 29,47,775, raising the total compensation to Rs. 1,49,31,400. This enhancement is accompanied by an interest rate of 9% per annum from the date of the filing of the claim petition until realization.

The appeal was filed by Smt. Sonia and others, challenging the adequacy of the compensation awarded by the Motor Accident Claims Tribunal, Jind. The tribunal had previously awarded Rs. 1,19,83,625 along with interest. The appellants argued that the compensation was inadequate, given the deceased’s income and the allowances that were excluded from the tribunal's calculations.

Presiding over the case, Justice Sudeepti Sharma reaffirmed the principles laid down by the Supreme Court, emphasizing that the full gross income, including all allowances and perquisites, should be considered when calculating the loss of income, with only income tax deductions permitted. The court found that the tribunal had erred in excluding allowances such as Dearness Allowance, dress allowance, and soap toilet allowance from the deceased's salary.

The judgment cited landmark Supreme Court cases, including Sarla Verma v. Delhi Transport Corporation and Pranay Sethi, to substantiate the approach towards calculating compensation. It also recognized the principles from the Magma General Insurance case concerning loss of consortium, thereby awarding sums under this head for spousal and filial consortium.

The court has directed the respondent, Oriental Insurance Company Ltd., to deposit the enhanced compensation amount with interest within two months. The tribunal is instructed to disburse the amount to the claimants based on the original award's ratio.

This judgment underscores the judiciary's commitment to ensuring fair compensation for victims of motor accidents and their families, aligning with the broader principles of justice and equity.

Bottom Line:

Motor Vehicles Act, 1988 - Determination of compensation for loss of income in motor accident cases must include gross taxable income, inclusive of all allowances and perquisites, and only income tax is to be deducted from the gross salary.

Statutory provision(s): Motor Vehicles Act, 1988 Section 166

Smt. Sonia v. Mukesh Kumar, (Punjab And Haryana) : Law Finder Doc Id # 2819978