'No Grounds To Slash Salary': SC Restores Compensation For Road Accident Victim’s Family

Last Updated:June 23, 2025, 15:20 IST

The claimants had sought compensation for the death of the bread winner of the family who was 28 years old when he met with the accident and succumbed.

The Supreme Court. (PTI File)

The Supreme Court has taken an exception to the reduction of salary of a deceased in computing compensation under the Motor Vehicle in a road accident case, while also emphasising even the children and the parents are entitled to compensation for loss of consortium.

A bench of Justices Sudhanshu Dhulia and K Vinod Chandran restored the order of the Motor Accident Claim Tribunal which awarded a total amount of Rs 23,07,000 to the dependents adopting the salary claimed of Rs 10,000 and reducing 1/3rd for personal expenses while taking 3/4th of 40 per cent of the income of the deceased as future prospects.

The appellants, Hansa Devi and others were the legal representatives of the deceased in a motor accident. They were the widow, three minor children and parents. The deceased was the driver of a truck in which a helper/cleaner was accompanying him. The driver had alighted after parking the truck and when he was boarding the truck, another truck driven rashly and negligently hit him and he died on the spot.

An FIR in the matter was lodged. The claimants sought compensation for the death of the bread winner of the family who was 28 years old when he met with the accident and succumbed.

The Tribunal awarded a total amount of Rs 23,07,000. The wife was granted loss of consortium at the rate of Rs 40,000, the children Rs 25,000 each and the parents Rs 10,000 each. The funeral expenses and loss of estate was also awarded at the rate of Rs 15,000 each.

The Insurance Company filed an appeal before the High Court in which there was considerable deduction made especially on the salary, which was reduced to Rs 4,076 adopting the minimum wages for a driver as Rs 5,434 with 40% future prospects. The claimants were granted only Rs 40,000 towards loss of consortium. The amount awarded was reduced to Rs 12,34,105.

Having the heard the parties, the bench said, “We find no reason to accede to the reduction of income as done by the High Court".

The court noted the accident occurred on May 08, 2014. In Ramachandrappa Vs Royal Sundaram Alliance Insurance Co Ltd (2011) this court held that even a coolie would get an income of Rs 4,500 in the year 2004. Hence, an unskilled labourer considering the marginal and incremental increase in each successive year at the rate of Rs 500 per year would be entitled to get almost Rs 10,000 in the year 2014, it said.

Thus, the bench said, “The claim made before the Tribunal with respect to the driver of heavy vehicle getting Rs 10,000 as wages per month must be necessarily accepted".

Insofar as the loss of consortium, the court pointed out, it has been held in New India Assurance Company Vs Somwati and Ors (2020) that even the children and the parents are entitled to compensation for loss of consortium.

“Since no appeal is filed by the claimants from the award of the Tribunal, we do not think there is any enhancement required. Still the award made as compensation for loss of consortium to the children and the parents by the Tribunal has to be retained," the bench said.

Therefore, the court set aside the order of the High Court restoring the order of the Tribunal. The amounts, with interest, as awarded by the Tribunal would be disbursed to the claimants within a period of two months, which would be equally apportioned in the name of the wife, children and parents, it clarified.

“If any of the minor children have not attained majority, the amount shall be kept in a fixed deposit, the interest of which can be disbursed to the mother who is the guardian," the bench further added.

Sanya Talwar

Sanya Talwar, Editor at Lawbeat, has been heading the organisation since its inception. After practising in courts for over four years, she discovered her affinity for legal journalism. She has worked previousl...Read More

Sanya Talwar, Editor at Lawbeat, has been heading the organisation since its inception. After practising in courts for over four years, she discovered her affinity for legal journalism. She has worked previousl...

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