Jammu and Kashmir High Court Upholds Tribunal's Compensation Award in Motor Accident Case

Family Pension Not Deductible from Compensation for Accidental Death, Reiterates Court

The Jammu and Kashmir High Court, presided over by Justice Sanjay Dhar, has dismissed the appeal filed by Reliance General Insurance Company against the compensation awarded by the Motor Accidents Claims Tribunal, Jammu, in the case of an accidental death. The Tribunal had awarded Rs. 42,54,900 along with interest to the claimants, which the insurance company challenged, arguing for a deduction of family pension from the compensation amount.

The case involved the death of Vijay Kumar, an ex-serviceman, who succumbed to injuries following a road accident involving a Swift car. The Tribunal had computed the compensation based on the deceased's income from both pension and a chemist shop he operated post-retirement. The insurance company contended that the family pension received by the widow should be deducted from the compensation, a plea that the High Court rejected.

Justice Sanjay Dhar, referencing Supreme Court precedents, emphasized that family pension is a form of deferred wages and not subject to deduction while computing compensation for accidental death under the Motor Vehicles Act. The judgment underscored that pensionary benefits and other pecuniary advantages are not linked to compensation for tortious acts and should not be deducted.

The Court further validated the Tribunal's assessment of the deceased's income from his chemist business despite the lack of documentary evidence, citing reasonable estimation based on the deceased's professional credentials and business operations.

This judgment reaffirms the legal stance that benefits earned by the deceased through service and investments should not offset compensation for the dependents' loss due to negligence by another party.

Bottom Line:

Family pension received by the widow of the deceased cannot be deducted while assessing loss of dependency under Motor Vehicles Act.

Statutory provision(s): Motor Vehicles Act, references to Supreme Court judgments on compensation principles.

Reliance General Insurance Co. v. Santosh Devi, (Jammu And Kashmir) : Law Finder Doc Id # 2796550