spinner

Supreme Court of India Increases Compensation for Accident Victim’s Family

Last Updated: 07-08-2024 03:56:46pm
Supreme Court of India Increases Compensation for Accident Victim’s Family

In a recent judgment, the Supreme Court of India enhanced the compensation for the family of a deceased accident victim. The case, Rojalini Nayak & Ors. v. Ajit Sahoo & Ors., revolved around the tragic death of Bichitra Nayak @ Bagula, who was employed as a ‘Khalasi’ in an ambulance that met with an accident in June 2010.

Background of the Case:

The deceased, Bichitra Nayak, was employed with ESSAR Steel Orissa Limited, earning Rs.5,000 per month. On June 4, 2010, the ambulance he was working in collided with a truck, resulting in his immediate death. The Third Motor Accident Claims Tribunal, Jagatsinghpur initially found no fault with the truck driver and deemed the claim petition unmaintainable. The deceased’s family, consisting of his wife, mother, and two sons, appealed this decision.

High Court’s Ruling:

On appeal, the High Court of Orissa recalculated the compensation, determining the total amount at Rs.8,30,000. After deducting the Rs.6,25,000 already paid by the employer, the remaining Rs.2,05,000 was to be paid by the insurers with interest. The High Court’s judgment was based on an erroneous deduction of personal expenses and an incorrect application of future prospects, which the Supreme Court later corrected.

Supreme Court’s Judgment:

Justice Sanjay Karol, presiding over the appeal, rectified these errors and significantly increased the compensation. The key aspects of the judgment are as follows:

  1. Personal Expenses Deduction:

    • The Supreme Court noted that the High Court had wrongly deducted 1/3rd of the income for personal expenses. Given four dependents, the correct deduction should have been 1/4th.
  2. Future Prospects:

    • The High Court applied a 25% addition to the deceased’s actual salary for future prospects. However, according to the Constitution Bench decision in National Insurance Co. Ltd. v. Pranay Sethi, a 30% addition should have been applied since the deceased was between 40 to 50 years old.
  3. Loss of Consortium:

    • The High Court awarded Rs.1,00,000 for loss of consortium. The Supreme Court recalculated this based on updated conventional heads and adjusted for inflation, resulting in Rs.48,400 per dependent, totaling Rs.1,93,600.
  4. Funeral Expenses and Loss of Estate:

    • The amounts for these were also adjusted, increasing from Rs.30,000 to Rs.36,300.

Final Compensation Calculation:

Heads High Court Supreme Court
Income Rs.60,000 p.a. Rs.60,000 p.a.
Future Prospects 25% (Rs.15,000) 30% (Rs.18,000)
Personal Expenses 1/3rd (Rs.25,000) 1/4th (Rs.19,500)
Multiplier 14 14
Loss of Consortium Rs.1,00,000 Rs.1,93,600
Loss of Dependency Rs.7,00,000 No change
Funeral Expenses + Loss of Estate Rs.30,000 Rs.36,300
Total Compensation Rs.8,30,000 Rs.10,06,900
Amount Already Paid Rs.6,25,000 Rs.6,25,000
Balance Payable Rs.2,05,000 Rs.3,81,900
Rate of Interest 6% 7.5%

Verdict:

"The appeal is allowed in the aforesaid terms. The impugned judgment dated 24th April, 2023, of the High Court of Orissa at Cuttack in MACA No.1168/2016 titled as Rojalini Nayak & Ors. v. Ajit Sahoo & Ors. is modified to the extent indicated in the chart. The amount so directed shall accrue from the date of filing of claim petition. Pending applications, if any, are also disposed of."

This landmark judgment underscores the judiciary's commitment to ensuring fair compensation for accident victims and their families, aligning the compensation calculations with legal precedents and inflation adjustments.

TAGS: Supreme Court of India Accident compensation Motor Accident Claims Tribunal Future prospects Personal expenses deduction Loss of consortium Enhanced compensation


Latest Posts

Supreme Court Upholds Decision in Property Dispute Between Sushma and Nitin Ganapati Rangole

Supreme Court Upholds Decision...

Supreme Court Orders CBI Investigation in Forgery and Fraud Case

Supreme Court Orders CBI Inves...

Supreme Court Upholds Kalelkar Award Benefits for Temporary Employees in Public Works Department

Supreme Court Upholds Kalelkar...

Supreme Court Rules on Common Passage Dispute in Kamal Kishore Sehgal vs. Murti Devi

Supreme Court Rules on Common ...

Delhi High Court Evaluates Petition Seeking Quashing of Criminal Proceedings

Delhi High Court Evaluates Pet...

Supreme Court Hears Appeal of Jagtar Singh Johal Against NIA Proceedings

Supreme Court Hears Appeal of ...

Delhi High Court Dismisses Writ Petitions Filed by Michael Builders for Lack of Territorial Jurisdiction

Delhi High Court Dismisses Wri...

Supreme Court Acquits Two in Babureddy Murder Case, Citing Witness Contradictions

Supreme Court Acquits Two in B...