Punjab and Haryana High Court Revises Compensation in Motor Accident Case

Family pension excluded from deceased's income calculation for loss of dependency; compensation reduced significantly.

In a significant judgment, the Punjab and Haryana High Court, presided over by Justice Parmod Goyal, has revised the compensation awarded in a motor accident case involving the untimely demise of Satheesh Kumar. The deceased, an ex-army personnel, was involved in a fatal accident on October 2, 2020, leading to a claim for compensation by his family members. Initially, the Motor Accident Claims Tribunal, Kurukshetra had awarded compensation amounting to Rs.77,24,440/- to the claimants, which included the deceased's family pension as part of his income for calculating loss of dependency.

The appellate court, however, has excluded the family pension from the deceased's income, following precedents set by the Supreme Court of India. The Court observed that family pension should not be added to the income of the deceased for the purpose of determining loss of dependency, as established in the case of Vishavjit Singh v. Cholamandalam. Consequently, the compensation has been recalculated based on the deceased's notional income as a highly skilled worker, which amounts to Rs.12,000/- per month.

The judgment clarifies that the deceased's family pension is unrelated to the accident and resultant death. Hence, it cannot be considered part of the income used to assess loss of dependency. The Court has now determined the compensation to be Rs.21,43,000/-, significantly reducing the original award by Rs.55,81,440/-.

This ruling underscores the importance of correctly assessing the parameters for compensation in motor accident cases, particularly concerning the inclusion of pensions. The revised compensation will be paid to the claimants along with interest at 7.5% per annum from the date of filing the claim petition until realization.

Bottom Line:

Compensation in motor accident cases - Family pension cannot be added to the income of deceased for determining loss of dependency - Only notional income of deceased as determined by Tribunal to be considered.

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

ICICI Lombard General Insurance Company Ltd. v. Priya PS, (Punjab And Haryana) : Law Finder Doc Id # 2804935