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2025 Supreme(P&H) 82

IN THE HIGH COURT OF PUNJAB AND HARYANA
ARCHANA PURI, J.
Reliance General Insurance Company Limited - Appellant
Versus
Shivani & Ors. - Respondents
FAO No. 263 of 2013
Decided On : 03-02-2025

Advocates Appeared:
For the Respondent: Ms. Faheen Bajwa Adv., Mr. Harsh Aggarwal Adv.
Mr. Tajender K. Joshi Adv., Mr. Rishav Jain Adv., Ms. Shivaly Singla Adv., Ms. Vasudha Sharma Adv., Mr. Varun Jain Adv.

Re-marriage does not extinguish a widow's right to compensation in fatal accidents; dependency includes emotional factors beyond financial support.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 - Compensation for deaths in a motor accident - Tribunal awarded compensation of Rs.31,89,520/- for Gurjeet Singh and Rs.21,98,360/- for Aman Goyal based on loss of dependency; appeals contested the amounts for enhancement and reduction. (Paras 1-4, 26)

(B) Right to compensation - Re-marriage of a widow does not extinguish her right to claim compensation; dependency encompasses emotional, psychological factors, not merely financial to qualify for claims. (Paras 10, 12, 17)

Facts of the case:
The appeals arose from a fatal motor accident on 19.03.2010 resulting in the deaths of Gurjeet Singh and Aman Goyal. The claimants sought enhancement of compensation awarded for the deceased from the Motor Accident Claims Tribunal.

Findings of Court:
Compensation awarded by the Tribunal was found to require re-computation with considerations of actual salary, personal dependency, and emotional impacts taken into account.

Issues: Key issues included the rightful computation of compensation for dependency and the impact of re-marriage on the entitlement to compensation.

Ratio Decidendi: Compensation must reflect emotional and psychological dependency; re-marriage of claimants does not abate their loss claims.

Result: Insurance appeal dismissed; claimant appeals allowed, with revised compensation set at Rs.54,61,235/- for Gurjeet Singh and Rs.44,82,398/- for Aman Goyal.

Table of Content
1. overview of the appeals against the compensation award (Para 1 , 2)
2. accident details and tribunal's findings on liability (Para 3 , 4)
3. computations of gurjeet singh's compensation (Para 6 , 7)
4. computations of aman goyal's compensation (Para 8 , 9)
5. arguments regarding widow shivani's entitlement to compensation (Para 10 , 11 , 12)
6. discussion on dependency definitions for compensation claims (Para 16 , 17)
7. the adequacy of awarded compensation necessitated re-evaluation. (Para 18)
8. re-determining compensation for gurjeet singh incorporating tax and deductions (Para 19 , 20 , 21 , 22)
9. final compensation calculations were enhanced based on dependencies. (Para 25 , 31 , 32)
10. re-determining compensation for aman goyal incorporating tax and deductions (Para 26 , 27 , 28 , 29)
11. final compensation awards and distribution among claimants (Para 33 , 34 , 35)
12. final ruling on the appeals and modifications to the award (Para 36 , 37 , 38)

JUDGMENT :

Archana Puri, J.

These are three appeals, filed by the rival parties to assail the Award dated 21.09.2012 passed by learned Motor Accident Claims Tribunal, on account of deaths of Gurjeet Singh and Aman Goyal, in a motor vehicular accident, which took place on 19.03.2010.

2. FAO-263-2013 has been filed by the insurance company, for seeking reduction of the quantum of compensation, awarded on account of death of aforesaid persons, whereas, FAOs-1503 and 1878-2013 have been filed by the appellants-claimants, thereby, seeking enhancement of the compensation.

3. On appraisal of the evidence, brought on record, vide impugned Award, learned Tribunal concluded about the accident to have taken place on 19.03.2010, on account of rash and negligent driving of truck bearing registration No.PB-13M-5373, driven by respondent-Amrit Pal Singh @ Amrit Singh and Gurjeet Singh as well as Aman Goyal, who were the occupants of the ill-fated car bearing registration No.PB-08Q-1523 and the said accident, resulted into death of Gurjeet Singh and Aman Goyal.

4. So far as, the manner and taking place of the accident as well as the liability fastened upon the driver, owner and insurer of the offending vehicle is concerned, none of the aforesaid parties have filed any appeal. Even though, appeal has been filed by the insurance company, but it is only for seeking reduction of the compensation awarded to the claimants.

5. For the convenience of discussion, the parties are referred to as making appearance before learned Tribunal.

6. Considering the aforesaid, firstly, let us consider of the claim qua death of Gurjeet Singh. It is the specific version of the claimants Gurmeet Kaur and others that deceased Gurjeet Singh was 36 years old and he was working as Senior Engineer in Swaraj Mazda. His salary was asserted to be Rs.32,386/- per month. It is not disputed that as per matriculation certificate, proved in evidence, the date of birth of Gurjeet Singh is established to be 01.12.1973 and thus, learned Tribunal had concluded about the age of deceased Gurjeet Singh to be 37 years, at the relevant time.

7. However, considering the earnings of deceased Gurjeet Singh to be Rs.33,130/-, 1/3rd was deducted as personal expenses and the residue was worked upon as Rs.22,080/- per month and the annual dependency was worked upon as Rs.2,64,960/-. Taking it to be so, while considering the age, the multiplier of ‘12’ was applied and the compensation was worked upon as Rs.31,79,520/-. To this amount, another amount of Rs.5,000/- was granted as ‘funeral expenses’ and Rs.5,000/- was granted on account of ‘loss of consortium’. Thus, the total compensation of Rs.31,89,520/- was granted to the claimants, qua death of Gurjeet Singh.

8. So far as, qua death of Aman Goyal, it was asserted by the claimants that he was working as engineer in Swaraj Mazda and was getting salary of Rs.23,617/-. After deduction, his salary came to be Rs.19,530/- per month. After making deduction to the extent of 1/3rd towards personal expen

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