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IN THE HIGH COURT OF PUNJAB AND HARYANA AT

CHANDIGARH

FAO-2179-2024 (O&M)

Date of Decision : 23.12.2025

UNITED INDIA INSURANCE CO. LTD. .... Appellant

VERSUS

KRISHNA DEVI & ORS .... Respondents

CORAM : HON’BLE MRS. JUSTICE ALKA SARIN

Present : Mr. Vipul Sharma, Advocate for

Mr. Paul S. Saini, Advocate for the appellant.

Mr. Rajiv Kumar Saini, Advocate for respondents No.1 to 4.

None for respondent No.5.

ALKA SARIN, J. (ORAL)

1. The present appeal has been preferred by the appellant

challenging the award dated 18.01.2024 passed by the Motor Accident Claims

Tribunal, Karnal (hereinafter referred to as ‘the Tribunal’) on the limited

ground that the deceased was a Haryana Government employee and that the

dependents of the deceased were entitled to receive the amount under the

Haryana Compassionate Assistance to the Dependents of Deceased

Government Employees Rules, 2006. Though it has been noted in the

impugned award that the dependents of the deceased would be entitled to

receive an amount of ₹32,59,008/-, however, while calculating the

compensation to be awarded to the dependents, only 50% of the said amount

i.e. ₹16,29,504 has been deducted from the compensation awarded.

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2. The Tribunal in the present case had awarded the following

compensation :

Sr. No. Heads Compensation Awarded

1. Monthly income ₹23,838

2. Future prospects 25% [₹23,838 + ₹5,960] = ₹29,798

3. Deduction 1/4^th [₹29,798 - ₹7,450] = ₹22,348

4. Annual income [₹22,348 x 12] = ₹2,68,176

5. Multiplier of 13 [₹2,68,176 x 13] = ₹34,86,288

6. Funeral expenses ₹15,000

7. Loss of estate ₹15,000

8. Loss of consortium for widow ₹40,000

9. Expenses incurred on the ₹1,99,900

treatment of victim/deceased

Total Compensation ₹37,56,188

Amount to be deducted ₹16,29,504

(received by respondents No.1

to 4 under Haryana

Compassionate Assistance to

the Dependents of Deceased

Government Employees Rules,

2006)

Compensation after ₹21,26,684

deduction

Interest @ 9% p.a.

3. Learned counsel for the appellant would contend that as per the

judgments of the Hon’ble Supreme Court in the cases of Reliance General

Insurance Co. Ltd. vs. Shashi Sharma & Ors. [2016(4) RCR (Civil) 569]

and Krishna & Ors. vs. Tek Chand & Ors. [2024 ACJ 443] the entire

amount received under the Haryana Compassionate Assistance to the

Dependents of Deceased Government Employees Rules, 2006 has to be

deducted while calculating the compensation payable to the respondents No.1

to 4 herein.

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4. Learned counsel for respondents No.1 to 4 does not dispute the

aforesaid fact. Learned counsel, however, states that the amounts awarded

under the conventional heads as well as under the head loss of consortium are

not in consonance with the law laid down by the Hon’ble Supreme Court in

the cases of National Insurance Company Ltd. vs. Pranay Sethi & Ors.

[(2017) 16 SCC 680], Magma General Insurance Company Limited vs.

Nanu Ram alias Chuhru Ram & Ors. [(2018) 18 SCC 130] and N.

Jayasree & Ors. vs. Cholamandalam M.S General Insurance Company

Ltd. [2021(4) RCR (Civil) 642]

5. Heard.

6. The argument of the learned counsel for the appellant that the

entire amount received by respondents No.1 to 4 under the Haryana

Compassionate Assistance to the Dependents of Deceased Government

Employees Rules, 2006 ought to be deducted, deserves to be accepted. The

Hon’ble Supreme Court in the case of Shashi Sharma (supra) has held as

under :

‘19. Reverting back to Rule 5, sub-clause (1) provides

for the period during which the dependents of the deceased

employee may receive financial assistance equivalent to

the pay and other allowances that was last drawn by the

deceased employee in the normal course without raising a

specific claim. Sub-rule (2) provides that the family shall

be eligible to receive family pension as per the normal

Rules only after the period during which they would

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