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:
Personal Expenses Deduction:
Future Prospects:
Loss of Consortium:
Funeral Expenses and Loss of Estate:
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
