The Supreme Court of India has significantly enhanced the payout for the family of a driver killed in a 2011 road accident.
The Division Bench of Justice Dipankar Datta and Justice Satish Chandra Sharma overturned a previous High Court order, nearly doubling the award from ₹10.51 lakh to ₹20.80 lakh.
A 15-Year Battle Against “Conjecture”
The case stems from a June 2011 accident where D. Velu, a 37-year-old driver, was killed instantly after his two-wheeler was hit by a rashly driven tanker lorry. For over a decade, the victim’s family fought lower court assessments that minimized his income.
While the Motor Accidents Claims Tribunal (MACT) and the Madras High Court estimated the victim’s monthly salary at ₹6,000 and ₹7,000 respectively, the Supreme Court found these figures ignored clear evidence. The Bench pointed to a salary certificate and employer affidavit confirming a fixed monthly salary of ₹10,000, stating that income determination must be founded on proof rather than “conjecture or assumptions”.
Correcting the Legal Framework
The Supreme Court identified two critical errors in the High Court’s judgment:
- Mandatory Future Prospects: The Court ruled it a “manifest error of law” to deny future prospects. Under the Pranay Sethi precedent, a 40% addition to the income is mandatory for those on fixed salaries under age 40.
- Refining Consortium: The Bench clarified that while “loss of love and affection” is no longer a separate head of compensation, it is now subsumed within a broader, comprehensive definition of “Consortium”.
The Final Calculation
The Apex Court re-computed the “just compensation” to ensure it was fair and reasonable without being a “bonanza”.
| Compensation Head | Supreme Court Award |
| Loss of Dependency (₹10,000 + 40% Future Prospects) | ₹18,90,000 |
| Spousal Consortium (Widow) | ₹50,000 |
| Parental Consortium (Two Children) | ₹80,000 |
| Filial Consortium (Mother) | ₹40,000 +1 |
| Funeral & Transport Expenses | ₹20,000 |
| Total Awarded | ₹20,80,000 |
Enhanced Interest for Delayed Justice
Acknowledging that the dependents have been pursuing legal proceedings for 15 years, the Court directed that 9% interest p.a. be paid on the total amount from the date of the original claim filing until realization. The insurer, Bharthi AXA General Insurance Co. Ltd., has been ordered to pay the balance amount within twelve weeks.
Case Details:
Case Title: V. PATHMAVATHI & ORS. v/s BHARTHI AXA GENERAL INSURANCE
CO. LTD & ANR.
Citation: SLP (C.) NO. 23880 OF 2022
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