Punjab & Haryana HC: Compensation Award to Deceased’s Family and Injured Victim Upheld in Motor Accident Case

Case Name: National Insurance Co. Ltd. v. Lalita & Ors.; National Insurance Co. Ltd. v. Raju & Ors.; National Insurance Co. Ltd. v. Kreshni Devi & Ors.
Date of Judgment: May 28, 2015
Citation: FAO Nos. 3764, 3765 and 3769 of 2015 (O&M)
Bench: Hon’ble Ms. Justice Ritu Bahri

Held: The High Court dismissed the insurance company’s appeals and upheld the Motor Accident Claims Tribunal’s award of compensation to the widow, parents of deceased Binder, and injured Raju. The Court held that the Tribunal had rightly applied the Supreme Court’s ruling in Rajesh v. Rajbir Singh (2013) to add 50% future prospects to the deceased’s income while calculating dependency. Since the matter regarding addition of future prospects for self-employed persons was still pending before a larger bench of the Supreme Court, there was no ground to interfere with the Tribunal’s award. The compensation amounts granted by the Tribunal were found to be just and proper.

Summary: The case arose from a road accident on 01.07.2013 in which Binder, while riding a motorcycle with Raju as pillion, was hit from behind by a rashly driven truck. Binder succumbed to injuries on the spot, while Raju sustained multiple fractures and head injuries. Separate claim petitions were filed by Binder’s widow Lalita, his parents Kreshni Devi and Bachna, and by injured Raju. The Tribunal held the driver, owner, and insurer jointly and severally liable and awarded Rs.16,41,800 to the dependents of Binder and Rs.2,40,137 to Raju with 7.5% interest. The insurer challenged the award, arguing that Lalita had remarried and was ineligible, that the accident was fabricated, and that future prospects could not be added for a self-employed deceased. The Court rejected these arguments, observing that the Tribunal had relied on cogent evidence including FIR, medical records, and witness testimony. Compensation was calculated on Binder’s assessed income of Rs.9,075 per month with one-third deduction for personal expenses and multiplier of 18. Additional sums were granted for loss of consortium, love and affection, funeral expenses, and transportation. Raju’s compensation accounted for medical expenses, disability, and loss of earning capacity. The High Court held that the Tribunal’s assessment was fair and consistent with prevailing law.

Decision: The High Court dismissed all three appeals filed by National Insurance Co. Ltd. and affirmed the compensation awards granted by the Motor Accident Claims Tribunal, Kurukshetra.