Court Fixes Monthly Income at Rs.12,000 and Enhances Compensation to Rs.20.8 Lakh in Fatal Highway Collision Case

A bench of Justice K. Vinod Chandran and Justice N.V. Anjaria heard an appeal arising from claims filed after a fatal road accident on NH‑13 near Bijapur, in which four occupants of a car died when the vehicle was hit by a goods lorry. The appellants challenged only the quantum of compensation awarded by the Tribunal and partly reduced by the High Court; negligence on the part of the lorry driver and insurance coverage were not in dispute.

The bench allowed the appeal and enhanced the compensation awarded to the claimants. The Court found that the High Court had "not referred to any material in fixing the monthly income" and, applying precedents on multiplier and future prospects, fixed the deceased's notional monthly income at Rs.12,000. The Court applied a multiplier of 14 and 25% future prospects in line with the Constitution Bench decision in National Insurance Co. Ltd. v. Pranay Sethi, made a 1/4th deduction for personal expenses, and awarded statutory amounts for funeral and loss of estate. The Court directed payment after adjusting amounts already paid, with interest at 6% from the date of application, to be paid within three months. The Court, in its reasoning, observed: Background

Four friends from Bijapur were travelling to Shirdi when a goods lorry, driven rashly and negligently in the opposite direction, struck their car; all occupants died on the spot. Four claim petitions were filed before the Motor Accident Claims Tribunal and appeals for enhancement followed. The Tribunal had assessed the deceased-husband of the first claimant at a monthly income of Rs.6,000; the High Court reduced that figure to Rs.5,500 without, according to the Supreme Court, reference to material. The claimants contended that the deceased's true monthly income was much higher, alleging proprietorship of a medical shop, partnership in a pharmaceutical distributorship and directorship of a cooperative bank. The insurer countered that those claims were not substantiated by authenticated documents or examination of partners.

The Trial Court had referred to various documents, proved the deceased's diploma in Pharmacy, and accepted the distributorship but found many documents unauthenticated and the medical shop licence cancelled before the accident. Applying precedents, including Ramachandrappa v. Royal Sundaram and the Constitution Bench decision in Pranay Sethi, the Supreme Court considered the deceased's qualifications and business associations and, on a notional assessment, fixed monthly income at Rs.12,000. The Court adopted a multiplier of 14 for a 43‑year‑old deceased not in regular employment and granted 25% for future prospects. A 1/4th deduction for personal expenses was made given four dependants. The Court awarded Rs.15,000 each for funeral expenses and loss of estate, and Rs.40,000 each for loss of consortium to the wife, the child and the parents (following New India Assurance Co. Ltd. v. Somwati and Ors.). The award totaled Rs.20,80,000. The Court directed that amounts already paid be deducted, with interest at 6% from the date of application, and that the balance be paid within three months. The appeal stood allowed and pending applications were disposed of.

Case No.: CIVIL APPEAL NO.11425 OF 2025 (2025 INSC 1093; SLP (C) No. 1733 of 2021) Case Title: Smt. Manjula & Ors. v. The Branch Manager, Oriental Insurance Company Ltd., Bijapur & Anr. Appearances: (List advocates if available, for both sides using the format) For the Petitioner(s): Counsel not indicated in the reported judgment For the Respondent(s): Counsel not indicated in the reported judgment