Punjab & Haryana High Court Enhances Compensation to ₹27.88 Lakh in Fatal Road Accident, Upholds Use of DC Rates for Income Assessment
Case Name: National Insurance Co. Ltd. v. Mohini and Others; Mohini and Others v. Rajender Kumar and Others
Date of Judgment: October 13, 2025
Citation: FAO-2204-2022 & FAO-4907-2022
Bench: Hon’ble Mrs. Justice Alka Sarin
Held: The Punjab & Haryana High Court enhanced the compensation in a fatal motor accident case from ₹26.30 lakh to ₹27.88 lakh, upholding the assessment of the deceased’s income as per Deputy Commissioner (DC) rates instead of minimum wages. Justice Alka Sarin ruled that income determined based on DC rates had been validated by the Supreme Court and that minimum wage notifications serve only as a guiding benchmark, not an absolute criterion. The Court also revised compensation under conventional heads such as loss of estate, funeral expenses, and consortium to align with recent Supreme Court precedents in Pranay Sethi, Magma General Insurance Co. Ltd., and N. Jayasree.
Summary: The case involved cross-appeals — one by National Insurance Company challenging the quantum of compensation and another by the claimants seeking enhancement. The accident occurred on September 20, 2018, resulting in the death of a 32-year-old man, leaving behind his 29-year-old widow and three minor children. The Motor Accident Claims Tribunal, Rohtak, had awarded ₹26.30 lakh compensation, calculating the monthly income at ₹12,700 as per DC rates, applying a 16 multiplier, 40% future prospects, and 1/4th deduction for personal expenses.
The Insurance Company argued that the income should have been assessed under the Minimum Wages Act, 1948, while the claimants sought revision under conventional heads. The High Court rejected the insurer’s contention, citing Saroj v. IFFCO Tokio General Insurance Co. Ltd. (2024 (4) RCR (Civil) 881), holding that DC rates were a permissible and fair basis for assessment. The Court emphasized that just compensation must reasonably reflect the victim’s contribution to the family’s sustenance and future security.
Justice Sarin recalculated the award, enhancing loss of estate and funeral expenses from ₹15,000 to ₹18,000 each and granting ₹48,000 each to the widow and three children under loss of consortium. The total compensation was reworked to ₹27,88,320 with 7.5% annual interest from the date of filing the claim petition till realization.
Decision: The High Court dismissed the appeal filed by National Insurance Company and partly allowed the claimants’ appeal, modifying the award to ₹27.88 lakh with interest at 7.5% per annum. The Court directed the insurer to deposit the enhanced amount in the claimants’ bank accounts within six weeks and keep the minors’ shares in fixed deposits as per Tribunal directions. Pending applications were disposed of.