Supreme Court enhances Compensation Amount in Accident Case

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The Supreme Court enhanced the compensation amount in the accident case.

Background 

The deceased at the time of accident/death was serving as a driver and was holding a valid driving license. According to  the original claimants he was earning Rs.15,000/­ per month.  

The Tribunal awarded the amount of compensation for the death of the deceased under different heads including the loss of dependency. 

The Tribunal considered the loss of dependency at Rs.9,00,000/­ considering the income of the deceased at Rs.7,500/­ per month. 

By the impugned judgment and order the High Court has enhanced the loss of dependency to Rs.14,28,120/­ considering the income of the deceased at Rs.8,500/­ per month.

Decision 

The division bench of Justice M.R. Shah and Justice Krishna Murari considering the fact that the deceased were having driving license and were working as drivers held that the claimants shall be entitled to the loss of dependency considering the income of the deceased at least as Rs.10,000/­ per month.

The court said that thereafter adding 40% towards future prospects and rise in income and applying the relevant multiplier the claimants shall be entitled to the enhanced amount of compensation.

The bench modified the impugned judgment and order passed by the High Court and held that the original claimants shall be entitled to a total sum of Rs.18,50,120/­ towards the compensation with 6% interest.

The court directed the respondents/insurance company to deposit the balance enhanced amount of compensation with the Tribunal within a period of  eight weeks from today failing which it shall carry an interest @ 7.5 % all throughout.  

Case title: Smt. Kalavati & Ors. v/s Mirza Kaisar Baig & Anr.

Citation: Civil appeal no. 6676 of 2022

Click here to read the Order/Judgment

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