IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA, J.
Cholamandalam Ms General Insurance Co. Ltd – Appellant
Versus
Usha Gupta, W/o Late Shri M.R. Gupta – Respondent
MAC.App. 314 of 2024 & CM APPLs. 36587 of 2024, 36589 of 2024
Decided on : 22-01-2025
(A) Motor Vehicles Act, 1988 - Section 173 - Appeal against compensation awarded for accidental death - Compensation of Rs. 13,36,140/- awarded to claimants, including family pension - Court held family pension not to be deducted while calculating loss of dependency, following precedents. (Paras 11-18)
(B) Compensation Calculation - The objective is to provide just and fair compensation to alleviate financial crisis of legal heirs, not to replace the deceased. (Para 8)
(C) Family Pension - Family pension is not a pecuniary advantage related to accidental death and should not be deducted from compensation. (Paras 12-17)
Facts of the case:
The appeal was filed by the Insurance Company against the award of compensation for the death of an 80-year-old man in a road accident, arguing that only non-pecuniary damages should be granted.
Findings of Court:
The Tribunal rightly calculated compensation without deducting family pension, affirming the principle that family pension is not linked to accidental death.
Issues: Whether family pension can be considered for calculating loss of dependency.
Ratio Decidendi: The court ruled that family pension is earned through service and not related to accidental death, thus should not be deducted from compensation.
Result: Appeal dismissed.
Certainly. Based on the provided legal document, here are the key points:
The appeal was filed by the insurance company challenging the award of compensation for the death of an elderly man in a road accident, arguing that only non-pecuniary damages should be awarded and that no compensation for loss of dependency should be considered due to the absence of evidence of gainful employment (!) (!) .
The court clarified that the purpose of awarding compensation is to provide just and fair relief to the legal heirs and to alleviate their financial hardship, not to replace the deceased (!) .
It was established that family pension is not a pecuniary advantage directly related to the accidental death and should not be deducted from the compensation amount. Family pension is earned through service and is intended to support the family, independent of the cause of death (!) (!) .
The court emphasized that amounts receivable under statutory benefits, such as pension or family pension, do not have a co-relation with the accidental death and are not liable for deduction while calculating compensation (!) (!) (!) (!) .
The decision reaffirmed that benefits like pension and gratuity are property of the deceased and are paid based on service conditions, not as a direct consequence of the accidental death (!) .
The court observed that the object of family pension is to sustain the surviving family members and ensure their livelihood, and thus, it cannot be considered as gainful income or pecuniary advantage related to the death (!) .
Consequently, the learned tribunal's decision not to deduct the family pension while calculating the compensation was upheld as correct (!) .
The appeal was dismissed, and the statutory deposit made by the insurance company was ordered to be returned (!) (!) .
Overall, the court held that the award of compensation was just and proper, and no interference was warranted (!) .
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. An Appeal under Section 173 Motor Vehicle Act, 1988 has been filed by the Insurance Company to challenge the Award dated 24.01.2024, vide which the compensation in the sum of Rs. 13,36,140/- along with interest @ 7% per annum has been awarded to the Claimants Respondent No.1&2/wife and son on account of demise of Sh. M.R. Gupta, aged 80 years, in the road accident dated 21.11.2021.
2. The Appellant/Insurance Company has challenged the Impugned Award on the ground that only Non-Pecuniary Damages ought to have been granted to the legal heirs of the 80-year-old deceased and no compensation towards Loss of Dependency could have been paid as there was no evidence that the 80-year-old deceased was gainfully employed. Further, there was no loss of income, as the only dependent i.e. the wife is already getting family pension to the tune of Rs. 20,000/- p.m.
3. Submissions heard and record perused.
4. Briefly stated, on 21.11.2021, at about 12:01 P.M, when the Deceased was crossing the road near Madipur Police Chowki, Punjabi Bagh, the offending Vehicle bearing Registration No. DL 8SCW0855 driven at a high speed, in a rash and negligent manner by the Driver/Hritik/Respondent No.3, hit the deceased due to which he sustained grievous injuries. He was shifted to Sri Balaji Action hospital, Paschim Vihar where he died during the treatment.
5. FIR No. 990/2021 under Section 279/304A IPC, 1860 at P.S. Punjabi Bagh was registered against the driver/Hritik.
6. The Detailed Accident Report/Claim Petition was filed on 20.09.2022.
7. Vide the Impugned Award dated 24.01.2024 compensation in the sum of Rs. 13,36,140/- along with interest @ 7% per annum has been awarded to the Claimants i.e. the Wife and the son of the Deceased.
Loss of Dependency:
8. While calculating Compensation in such unfortunate cases, it must be borne in mind that while no amount of monetary compensation can replace a person, but the objective of granting compensation is to grant just and fair compensation so as to alleviate the financial crisis which may befall the legal heirs of the deceased and to place them in a position to ensure at least financial security. With this in mind, the compensation may be calculated in this case.
9. Admittedly, the deceased, Mr. M.R. Gupta, was a retired Superintendent from Government Boys Sr. Sec. School, Madipur, Delhi and on the date of accident, was getting a pension in the sum of Rs.41,737/- per month, as has been reflected in his Pension Account of the deceased Ex. PW-1/2 and Particulars of Service of Pensioner Ex. PW-1/3 (OSR). Furthermore, it is not disputed that even after the demise of Late Sh. M.R. Gupta, his wife/Smt. Usha, is getting the family pension in the sum of Rs.20,000/- per month.
10. The question however, for consideration is whether the Family pension being received by the wife, can be considered for calculating Loss of Dependency?
11. This aspect was considered in the case of Mrs. Helen C. Rebello & Ors. vs. Maharashtra State Road Transport Corpn. & Anr. AIR, 1998 SC 3191 wherein it was observed that while calculating the compensation on account of death, the pecuniary advantage accruing under the Act, had to be deciphered by co-relating it with the accidental death. The compensation payable under the Motor Vehicles Act is on account of the pecuniary loss to the claimant by accidental injury or death and not other forms of death. The pecuniary advantage cannot be interpreted and co-related to any other source/form of death such as natural death or death by suicide, serious illness, including even death by accident, through train, air flight not involving motor vehicle because the same would dilute all possible benefits conferred on the Claimant and would be contrary to the spirit of law. If the pecuniary advantage resulting from death was to include all forms of amounts whether by way of inheritance, succession or any other manner, then it could obliterate both, all possible conferment of econ
United India Insurance Co. Ltd. vs. Patrica Jean Mahajan & Ors.
Family pension is not a pecuniary advantage related to accidental death and should not be deducted from compensation awarded under the Motor Vehicles Act.
Pension income constitutes a loss in dependency claims and must be compensated irrespective of family pension received by heirs.
Family pension should not be deducted from compensation in motor accident claims, and dependants must be established based on evidence.
Compensation for wrongful death under the Motor Vehicles Act must not deduct pension or insurance benefits; claimants are also entitled to future prospects enhancement regardless of the deceased's ag....
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