Motor Accident Compensation Enhanced: Supreme Court Grants Relief to Family of Deceased
The case of Seema Rani & Ors. v. The Oriental Insurance Co. Ltd. & Ors. was brought before the Supreme Court after a prolonged legal battle concerning compensation for the death of Dev Raj in a road accident. The appellants, comprising the deceased’s wife and children, sought an increase in the compensation awarded by the Motor Accident Claims Tribunal (MACT) and later modified by the Punjab & Haryana High Court.
The Supreme Court was required to determine two key issues: (1) whether the quantum of compensation granted by the lower courts was adequate, and (2) whether the major sons and married daughter of the deceased should be considered as dependents for the purpose of compensation.
Background of the Case
On May 13, 2015, Dev Raj, aged 50, was traveling on his scooter when he was hit by a rashly driven bus. He died on the spot, and the driver of the offending vehicle fled. His wife and children subsequently filed a claim petition before the MACT, seeking Rs.50,00,000 as compensation.
MACT’s Judgment
The MACT determined that the deceased was employed in Punjab State Power Corporation Limited and had a monthly income of Rs.23,345. It awarded Rs.24,36,155 with 7% interest per annum. The MACT included all four appellants (wife, sons, and daughter) as dependents of the deceased.
Appeals Before the High Court
Both the claimants and the insurance company appealed. The claimants sought higher compensation, arguing that future prospects were not considered. The insurance company contended that the major sons and the married daughter were not dependents and that a 50% deduction should have been applied instead of 25%.
The High Court ruled partially in favor of both parties, granting future prospects at 30% but also accepting the insurance company’s contention that the major sons and married daughter were not dependents. As a result, a higher deduction of 50% was applied, and the total compensation was recalculated to Rs.24,44,183.
Supreme Court’s Observations
The Supreme Court, comprising Justices Sanjay Karol and Prashant Kumar Mishra, found that the High Court had erred in excluding the major sons and the married daughter as dependents. The Court referred to its earlier ruling in National Insurance Company Limited v. Birender & Ors., which held that major earning children of the deceased, even if married, could still claim compensation as legal representatives.
The Court observed:
“In such circumstances, it cannot be said that they were self-sufficient or independent of the deceased. Applying the exposition in Birender, there is no reason to exclude a married daughter from compensation.”
Revised Compensation by the Supreme Court
The Supreme Court recalculated the compensation as follows:
- Yearly income: Rs.2,80,140
- Future prospects (30%): Rs.3,64,182
- Deduction (1/4th): Rs.2,73,137
- Multiplier (13): Rs.35,50,781
- Loss of estate: Rs.18,150
- Funeral expenses: Rs.18,150
- Loss of consortium: Rs.1,93,600
- Total: Rs.37,80,681
The difference in compensation at each level was noted as follows:
| Stage | Compensation Awarded |
|---|---|
| MACT | Rs.24,36,155 |
| High Court | Rs.24,44,183 |
| Supreme Court | Rs.37,80,681 |
Key Verbal Arguments of the Court
“A major son or married daughter cannot be excluded from the scope of compensation merely because they have a source of income. The law recognizes their right to be considered dependents.”
“The principle of ‘just compensation’ mandates that future prospects and economic realities be adequately factored into the award.”
“The tribunal must focus on financial dependency and not merely on legal dependency when assessing compensation.”
Final Verdict
The Supreme Court allowed the appeal and directed the insurance company to pay the revised compensation of Rs.37,80,681 along with interest as awarded by the MACT.
Impact of the Judgment
This ruling is significant as it:
- Reaffirms the right of married daughters and major sons to claim compensation.
- Emphasizes the importance of future prospects in compensation calculations.
- Ensures that just compensation is granted to victims’ families without arbitrary deductions.
The judgment sets a precedent for similar cases where dependents are wrongly excluded based on their age or marital status, ensuring a fair and comprehensive approach to accident compensation claims.
Petitioner Name: Seema Rani & Ors..Respondent Name: The Oriental Insurance Co. Ltd. & Ors..Judgment By: Justice Sanjay Karol, Justice Prashant Kumar Mishra.Place Of Incident: Bathinda, Punjab.Judgment Date: 10-02-2025.
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