2025 Supreme(Online)(P&H) 6581
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J
Iffco Tokio General Insurance Company Limited – Appellant
Versus
Darshan – Respondent
XOBJC-264-CII-2018
For the Appellants/Petitioners: Jasleen Kaur, Sandeep Singh
For the Respondents: Rishav Jain
In compensation claims under the Motor Vehicles Act, Tribunals must consider the educational qualifications of a deceased student to determine income, rather than relying solely on minimum wages, while ensuring mandatory awards for conventional heads like loss of consortium and estate as per established Supreme Court guidelines.
Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor Accident - Quantum of compensation - Enhancement of - Educational qualification of deceased: Even in absence of documentary evidence, student of diploma in engineering deserves consideration of income higher than minimum wages - Income assessed at Rs.10,500/- (highly skilled labourer) - Future prospects applied at 40% - Multiplier of 18 maintained - Conventional heads (Loss of estate, consortium and funeral expenses) revised in accordance with statutory guidelines - Interest rate enhanced to 9% per annum from date of filing of petition. (Paras 9, 10, 11, 13 and 14)
Facts of the case:
An appeal was preferred against a motor accident tribunal award relating to the death of a student pursuing a diploma in engineering. The tribunal had awarded Rs.13,46,000/- based on minimum wages. The claimant sought enhancement on the ground that the assessment was on the lower side.
Findings of Court:
The court held that the tribunal erred in adopting basic minimum wages without regard to the educational potential of the deceased. Income was adjusted to reflect highly skilled labourer status. Additional compensation was awarded under conventional heads as none were granted by the tribunal.
Issues: Whether the tribunal correctly assessed the notional income and addressed conventional heads in the compensation award.
Ratio Decidendi: Educational qualifications must be factored into income assessment in motor accident cases; conventional heads for loss of consortium and estate are mandatory under established legal principles.
Result: Cross-objection allowed; compensation enhanced by Rs.3,51,300/-.
| Table of Content |
|---|
| 1. overview of the cross-objection regarding compensation enhancement for a motor accident death. (Para 1 , 2) |
| 2. summary of opposing contentions from the claimant and the insurance company. (Para 3 , 4) |
| 3. assessment of compensation applying judicial precedents regarding income, qualifications, future prospects, and conventional heads. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12) |
| 4. final calculation of enhanced compensation and directions for disbursement. (Para 13 , 14 , 15 , 16) |
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SUDEEPTI SHARMA J.
1. The present cross-objection has been preferred against the award dated 12.02.2018 passed by the learned Motor Accident Claims Tribunal, Sangrur in the claim petition filed under Section 166 of the Motor Vehicles Act, 1988 (for short, 'the Tribunal’) for enhancement of compensation granted to the claimants to the tune of Rs.13,46,000/- along with interest @ 7% per annum, on account of death of Amandeep Singh in a Motor Vehicular Accident, occurred on 10.04.2017.
2. As sole issue for determination in the present cross-objection 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. The learned counsel for the claimant-cross objector contends that the amount assessed by the learned Tribunal is on the lower side and deserves to be enhanced. Therefore, he prays that the present cross-objection be allowed and amount of compensation be enhanced as per latest law.
4. Per contra, learned counsel for appellant-Insurance Company contends that the previous counsel engaged by the appellant has been appointed in the office of Advocate General and she wanted to seek instructions from the appellant and no instructions are received by counsel appearing on behalf of the appellant.
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 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 fam