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2026 Supreme(P&H) 327

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
The Oriental Insurance Co. Ltd – Appellant
Versus
Balwant Singh and ors. – Respondents
FAO-566 of 2022
Decided On : 24-02-2026

Advocates Appeared:
For the Appellant :Mr. Satpal Dhamija, Advocate.
For the Respondents:Mr. I.S. Cooner, Advocate.

JUDGMENT :

SUDEEPTI SHARMA, J.

1. The present appeal has been preferred against the award dated 06.10.2021 passed by the learned Motor Accident Claims Tribunal, Patiala (for short, 'the Tribunal’) in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988, wherein, the appellant/insurance company was held liable to pay the compensation to the claimants/respondents No.1 to 4 to the tune of Rs.29,49,500/- along with interest @ 7.5 % per annum, on the ground of quantum of compensation to be on higher side.

2. As sole issue for determination in the present appeal is confined to quantum of compensation awarded by the learned Tribunal, a detailed narration of the facts of the case is not required to be reproduced here for the sake of brevity.

SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES

3. Learned counsel for the appellant-Insurance Company contends that the learned Tribunal has assessed the income of the deceased Gurdeep Kaur on higher side as there is no evidence on record to substantiate the same. He, therefore, prays that the present appeal be allowed and amount of compensation be reduced.

4. Per contra, learned counsel for claimants/respondents No.1 to 4 contends that compensation awarded by the learned Tribunal is on the lower side hence warrants enhancement. He further contends that they have preferred separate appeal bearing FAO-1428-2022, titled as “Balwant Singh and others Vs. Jagsir Singh and others” seeking enhancement of compensation he therefore, prays that the present appeal be dismissed and compensation be enhanced.

5. I have heard learned counsel for the parties and perused the whole record of this case with their able assistance.

SETTLED LAW ON COMPENSATION

6. Hon’ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation and Another [(2009) 6 Supreme Court Cases 121], laid down the law on assessment of compensation and the relevant paras of the same are as under:-

30. Though in some cases the deduction to be made towards personal and living expenses is calculated on the basis of units indicated in Trilok Chandra, the general practice is to apply standardised deductions. Having a considered several subsequent decisions of this Court, we are of the view that where the deceased was married, the deduction towards personal and living expenses of the deceased, should be one- third (1/3rd) where the number of dependent family members is 2 to 3, one-fourth (1/4th) where the number of dependent family members is 4 to 6, and one-fifth (1/5th) where the number of dependent family members exceeds six.

31. Where the deceased was a bachelor and the claimants are the parents, the deduction follows a different principle. In regard to bachelors, normally, 50% is deducted as personal and living expenses, because it is assumed that a bachelor would tend to spend more on himself. Even otherwise, there is also the possibility of his getting married in a short time, in which event the contribution to the parent(s) and siblings is likely to be cut drastically. Further, subject to evidence to the contrary, the father is likely to have his own income and will not be considered as a dependant and the mother alone will be considered as a dependant. In the absence of evidence to the contrary, brothers and sisters will not be considered as dependants, because they will either be independent and earning, or married, or be dependent on the father.

32. Thus even if the deceased is survived by parents and siblings, only d the mother would be considered to be a dependant, and 50% would be treated as the personal and living expenses of the bachelor and 50% as the contribution to the family. However, where the family of the bachelor is large and dependent on the income of the deceased, as in a case where he has a widowed mother and large number of younger non-earning sisters or brothers, his personal and living expenses may be restricted to one-third and contribution to the family will be taken as two-third.

* * * * * *

42.

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