NATIONAL INSURANCE COMPANY LIMITED versus BIRENDER AND ORS.

NATIONAL INSURANCE COMPANY LIMITED versus BIRENDER AND ORS.

Major married and earning sons as legal representatives are entitled to apply for and receive compensation under Section 166; compensation must be calculated on gross salary less tax with future prospects and a one-third deduction for personal expenses where there are two to three dependants; family pension payable after the period of financial assistance under the 2006 Rules cannot be treated as immediately deductible and amounts under Rule 5(1) should only be deducted if it is shown the dependants have received or will receive them, and compensation may be paid subject to affidavit that such amounts have not been and will not be claimed, with subsequent deductions if paid later.

Parties
Appellant/insurer: National Insurance Company Limited; Respondent(s): Birender and Ors.
Jurisdiction
India
Judgment Date
13 January 2020
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal
Outcome
Appeals partly allowed
Legal Topics
Dependency, Legal Representative, Deduction of Statutory Benefits, Assessment of Damages, Family Pension, Haryana Compassionate Assistance Rules 2006
Motor Vehicles Act Insurance Tort Compensation Law Dependency Legal Representative Deduction of Statutory Benefits Assessment of Damages +2 more

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Parties

National Insurance Company Limited

Appellant/insurer

Birender and Ors.

Respondent(s)

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal

Legal Issues

  1. 1 Whether the major sons of the deceased who are married and gainfully employed or earning can claim compensation under the Motor Vehicles Act, 1988
  2. 2 Whether such legal representatives are entitled only to compensation under the conventional heads
  3. 3 Whether the amount receivable by the legal representatives of the deceased under the 2006 Rules is required to be deducted as a whole or only a portion thereof

Ratio Decidendi

Major married and earning sons as legal representatives are entitled to apply for and receive compensation under Section 166; compensation must be calculated on gross salary less tax with future prospects and a one-third deduction for personal expenses where there are two to three dependants; family pension payable after the period of financial assistance under the 2006 Rules cannot be treated as immediately deductible and amounts under Rule 5(1) should only be deducted if it is shown the dependants have received or will receive them, and compensation may be paid subject to affidavit that such amounts have not been and will not be claimed, with subsequent deductions if paid later.

Court Disposition

Appeals partly allowed

Orders

  • Supreme Court set aside parts of the High Court order and directed recalculation of compensation on basis of gross salary Rs.23,123 per month less tax, 30% future prospects, multiplier 13 and one-third deduction for personal expenses
  • Total compensation recalculated and rounded to Rs.31,96,230 payable to claimants together with interest at 9% per annum from date of filing of claim petition till payment