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2025 Supreme(SC) 1804

SUPREME COURT OF INDIA
K. VINOD CHANDRAN, N.V. ANJARIA, JJ.
Smt. Chandra Kala & Ors. – Appellants
Versus
ICICI Lombard Motor Insurance Company Limited & Ors. – Respondents
Civil Appeal Nos. 12581-12582 of 2025 (@Special Leave Petition (C) Nos.5687-88 of 2020)
Decided On : 26-09-2025

Advocates appeared:
For the Petitioner(s): Mr. Nikhil Jain, AOR Ms. Divya Jain, Adv.
For the Respondent(s): Mr. Atul Nigam, Adv. Mrs. Priya Puri, AOR Ms. Tanvi Nigam, Adv. Mr. Sachin Dubey, Adv. Ms. Riya Dogra, Adv. Ms. Lubhanshi Tanwar, Adv.

Compensation for loss of income must be based on established precedents, accounting for lost earnings, future prospects, and appropriate multipliers, while ensuring fairness in awards for consortium and related losses.

Headnote:(A) Motor Vehicles Act, 1988 - Sections on compensation claims - Award of Tribunal disputed - No documentary proof of income was provided by appellants, tribunal adopted Rs. 189 per day, confirmed by High Court. The deceased's monthly income as a Mason is safely suggested to be Rs. 9,500/- based on established precedents. The High Court’s computation of compensation included a multiplier of 14, a 25% addition for future prospects, with a deduction for personal expenses, resulting in a fair calculation. Compensation claimed for loss of consortium and other conventional heads was structured and amounts were awarded accordingly. (Paras 3-6)

Facts of the case:
The appellants claimed compensation for the death of a Mason who was their only breadwinner. The Tribunal’s initial award faced appeals from both claimants and the insurer regarding the income assessment and compensation calculation.

Findings of Court:
The High Court confirmed the award amounting to Rs. 16,86,250/-, which includes compensation for loss of future income and consortium, besides funeral expenses.

Issues: The pivotal issues revolved around the accurate determination of the deceased’s income, appropriate multipliers for compensation, and the validity of the awarded amounts for consortium and fatalities.

Ratio Decidendi: The court determined the deceased's income based on reliable increments recognized in previous judgments, aligning with the legal standards for assessing compensation in similar cases while confirming proper deductions for personal expenses. The High Court's methodical approach to calculating compensation was validated.

Result: Appeals allowed with modifications.

Table of Content
1. nature of the appeal concerning award quantum. (Para 2)
2. income of deceased mason assessed by tribunal. (Para 3)
3. calculation of compensation and loss of consortium. (Para 4 , 5)
4. final order on appeal and payment. (Para 6 , 7 , 8)

ORDER :

Leave granted.

2. The appeal is against the quantum of award. The award of the Tribunal was challenged in first appeal by both the claimants and the Insurance Company.

3. The appellants contended that the deceased was a Mason and was earning an income of Rs. 400 per day. The Tribunal found that there was no documentary proof and adopted the income of Rs. 189 per day, which the High Court confirmed was the accepted daily wage at the time when the accident occurred.

4. Ramachandrappa vs. Manager, Royal Sundaram Alliance Insurance Company Limited , (2011) 13 SCC 236 held that a Coolie would be entitled to a minimum wage of Rs. 4,500/- in a month; with reference to an accident that occurred in 2004. Considering an incremental increase of Rs.500/- for every year, in 2014, when the accident in the present case occurred even a Coolie would have been entitled to Rs. 9,500/- per month. There can be no documentary proof offered for the income of a Mason, who is also a skilled worker. In any event, it would be safe to adopt a monthly income of Rs. 9,500/- The High Court, considering the decision in Pranay Sethi, (2017) 16 SCC 680, adopted a multiplier of 14 for the 43-year-old deceased, and also made an addition of 25% for future prospects and deducted 1/4th for personal expenses, which computation is perfectly in order.

5. As compensation for loss of consortium, the High Court has awarded an amount of Rs. 40,000/-. In fact, it was held that loss of parental and filial consortium is payable to wife and children at the rate of Rs. 40,000/- each in New India Assurance Company v. Somwati and Ors. , (2020) 9 SCC 644 In the present case, the wife and three minor children of the deceased were before Court claiming compensation for the death of the only breadwinner of their family. All the claimants are entitled to Rs. 40,000/- each for loss of consortium. In addition, on the conventional heads of loss of estate and funeral expenses, amount of Rs. 15,000/- each is awarded.

Sr. No.

Particulars

Amounts

1.

Compensation for loss of future income (Rs.9,500 x 12 x 14 x 125% x ¾)

Rs. 14,96,250/-

2.

Loss of consortium (Rs.40,000 x 4)

Rs. 1,60,000/-

3.

Loss of estate

Rs.15,000/-

4.

Funeral expenses

Rs.15,000/-

Total

Rs.16,86,250/-

6. The awarded amounts shall be paid, after deducting that already paid, with interest @ 6% per annum as directed by the Tribunal from the date of application till the date of payment.

7. The appeals stand allowed with the above-said modifications.

8. Pending application(s), if any, shall stand disposed of.

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