In calculating dependency compensation under the Motor Vehicles Act, the monthly income of the deceased must include all allowances and perks that are part of the salary packet and beneficial to the claimant's family, excluding only tax-deductible statutory contributions.

Judgment

16/04/2026

1. The present appeal has been filed by the appellants claimants (hereinafter referred to as ‘claimants’) under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award dated 24.06.2011 passed by the learned Additional District & Sessions Judge (Fast Track) No.6, Jaipur Metropolitan, Jaipur and the Motor Accident Claims Tribunal Jaipur City, Jaipur in MAC Case No. 343/2008 (hereinafter referred to as ‘Tribunal’) by which the claim petition filed by the claimants was partly allowed.

2. The brief facts of the case are that on 19.04.2006, Rajaram Meena, along with other persons, was travelling in a taxi bearing registration No.RJ14-T-5955 from Police Station Shipra Path towards Bundi. At about 2:30PM, when the taxi reached near Niwai Bypass, a truck bearing registration No. HR66-1775, being driven by Respondent No. 1, came from the Tonk side at a high speed and in a rash and negligent manner. The driver of the truck lost control over the vehicle, as a result of which it came onto the wrong side of the road and collided with the taxi. Due to the said accident, the occupants of the taxi sustained serious injuries and later on, Rajaram Meena succumbed to death.

3. It was also alleged that at the time of accident, the age of the deceased was 34 years and he was working as Police Constable with Rajasthan Police and was drawing a salary of Rs.8,900/- per month.

4. The learned Tribunal, vide impugned judgment and award, partly allowed the claim petition and awarded total compensation of Rs.15,73,100/- in favour of the claimants, alongwith interest @ 6% per annum.

5. Being dissatisfied with the impugned judgment and award, the present appeal has been preferred by the claimants seeking enhancement of compensation so awarded.

6. Learned counsel for the claimants submits that the deceased was working as Police Constable at Police Station Shipra Path and was drawing a salary of Rs.8,900/- per month which was duly proved by the salary certificate issued from the Office of Police Superintendent, Head Office, Jaipur City, Jaipur, which was produced by the claimants before the learned Tribunal, marked as Exhibit-6.

6.1 He further submits that the Tribunal while calculating the monthly income of the deceased for the purpose of determining compensation towards loss of dependency erred in taking into consideration only the basic pay, Dearness Pay (DP) and Dearness Allowance (DA) payable to the deceased and deducting the amount of Higher Duties Allowance (HDA), City Compensatory Allowance (CCA), House Rent Allowance (HRA), washing allowance and misc. allowances. He also submits that the above allowances are required to be taken into consideration for the purpose of calculation of loss of dependency.

7. On the other hand, learned counsel for the respondents - Insurance Company opposes the submissions made by the learned counsel for the claimants and submits that the award passed by the learned Tribunal is just and fair and, therefore, no interference is required by this Court.

8. Heard learned counsel for the parties and perused the material available on record.

9. The only issue for consideration is whether the learned Tribunal was justified in excluding the amount which was being paid to the deceased towards the Higher Duties Allowance (HDA), City Compensatory Allowance (CCA), House Rent Allowance (HRA), washing allowance and misc. allowance.

9.1 The Hon'ble Supreme Court in the case of National Insurance Company Ltd. Vs. Indra Srivastava & Ors., reported in AIR (2008) SC 845, while dealing with concept of income held as under:-

"8. The term 'income' has different connot