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2025 Supreme(P&H) 1502

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
PARMOD GOYAL, J.
ICICI Lombard General Insurance Company Ltd. – Appellant
Versus
Priya PS and Others – Respondents
FAO 5779 of 2025 (O&M)
Decided On : 29-10-2025 

Advocates Appeared:
For the Appellant : Mr. Preet Harinder Singh Pannu, Adv.
For the Respondents:Mr. Ram Kumar Saini, Advocate and Mr. Ankit Saini, Advocate

The court established that multiplier for compensation depends on the accurate assessment of the deceased's age and clarified that family pension cannot be included as income for loss of dependency.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166, 168, and 173 - Appeal against Motor Accident Claims Tribunal award - Compensation of Rs.77,24,440/- awarded for death due to accident, modified to Rs.21,43,000/- - Tribunal erred in considering age for multiplier and future prospects - Family pension not included as income for loss of dependency. (Paras 2, 8, 10-12)

(B) Appeal - Scope of review - Appellate court's role is to assess if lower court's determination is afflicted by legal errors or irreparable vices; merely disagreeing does not warrant interference. (Para 4)

Facts of the case:
Appellant challenged an award due to quantum of compensation after death of deceased from a road accident. Claimants included wife, children, and parents, seeking compensation for their loss. (Paras 1-3)

Findings of Court:
Tribunal's award modified, establishing loss of dependency based on accurate assessment of the deceased's age and adjusted compensation metrics. (Paras 10-13)

Issues: Determining the correct age for compensation multiplier, validity of family pension inclusion in loss of income. (Paras 2, 8, 10)

Ratio Decidendi: Court clarified that age at death impacts the multiplier; future prospects must align with definitive sources, and family pension cannot augment compensation for loss derived from the accident. (Paras 8, 10-12)

Result: Appeal allowed in above terms, compensation modified.

Table of Content
1. introduction to the case and parties involved. (Para 1)
2. framing of issues in the case. (Para 2)
3. court's acceptance of claimant's issues. (Para 3)
4. arguments regarding the compensation amount. (Para 4 , 5)
5. clarifications of deceased's age and income. (Para 6 , 7 , 8)
6. discussion on pension and its impact on compensation. (Para 9 , 10 , 11 , 12)
7. calculation of awarded compensation. (Para 13)
8. final decision and order. (Para 14 , 15)

JUDGMENT :

PARMOD GOYAL, J.

1. Appellant-Insurance Company has preferred present appeal being aggrieved by award dated 09.07.2025 passed by Motor Accident Claims Tribunal, Kurukshetra (hereinafter referred to as ‘Tribunal’), whereby compensation of Rs.77,24,440/- has been awarded in favour of respondents-claimants. Claimants-respondents i.e. wife, children and parents of deceased Satheesh Kumar had sought compensation on account of untimely demise of Satheesh Kumar (hereinafter referred to as ‘deceased’) in accident dated 02.10.2020 caused by offending vehicle bearing No.DL 1LAD 9772.

2. Following issues were framed:-

“1. Whether the accident in question resulting in death Satheesh Kumar M took place on 02.10.2020 at 02:30 a.m. in the area of village Khanpur Kolian near Mahindra Agency on GT Road, Police Station Sadar Thanesar (Kurukshetra) due to rash and negligent driving of the offending Bolero bearing registration No.DL1L-AD-9772 by respondent No.1 & owned by respondent No.2 or due to rash and negligent driving of Mini Bus bearing registration No.PB-01A-8009 by the deceased Satheesh Kumar M himself & owned by respondent No.4 or due to their contributory negligence? OPP

2. If issue No.1 is proved to what amount of compensation the petitioners are entitle to and from whom? OPP

3. Whether respondents No.1 and the deceased were not having valid and effective driving licences at the time of accident and there was violation of the terms and conditions of the insurance policies by respondent No.1 and 2 as well as by the deceased and respondent No.5. Thus, respondents No.3 and 5 are not liable to pay any compensation to the petitioners? OPR-3 & 5

4. Relief.”

3. Issues No.1 and 2 were decided in favour of claimants. Issue No.3 was decided against respondent No.3 and total compensation of Rs.77,24,440/- along with interest @ 7.5% per annum from the date of institution of suit till realization was granted vide impugned award.

4. Appellant is primarily aggrieved by quantum of compensation and has challenged the quantification of compensation as has been done by Tribunal. Learned counsel for appellant has challenged quantification on following grounds:-

i. That age of deceased has been taken wrongly to be 40 years whereas from the evidence led by claimants- respondents, it is clearly made out that deceased was aged 41 years 06 months at the time of his death and therefore, Tribunal has wrongly awarded multiplier of 15 instead of 14 and has also wrongly awarded future prospects @ 40% instead of 25 % as mandated by Hon’ble Supreme Court of India in Sarla Verma & Ors. Vs. Delhi Transport Corporation & Anr.; 2009(3) RCR Civil (77) and National Insurance Co. Ltd. Vs. Pranay Sethi, 2017(4) RCR (Civil) 1009

ii. That Tribunal has erred in adding pension being received by deceased while determining his income for the purpose of quantification of loss of dependency on account of death in the accident.

Learned counsel for appellant has placed reliance upon order of the Hon’ble Supreme Court of India in Vishavjit Singh & Ors. Vs. Cholamandalam & Anr., Special Leave Petition (Civil) No.13442 of 2020 decided on 21.05.2025.

5. On the other hand, learned counsel for claimants-respondents has vehemently argued that age has been rightly taken as 40 years and therefore the multiplier as well as future prospects have been rightly granted. He further argued that family pension has to be added in the income of deceased for calculating loss of dependency and has placed reliance upon judgments passed by this Court i

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