LexNEW INDIA ASSURANCE CO. LTD. versus KAMLESH AND OTHERS.
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[2025] 4 S.C.R. 2594 : 2025 INSC 724 New India Assurance Co. Ltd. v. Kamlesh and Others. (Civil Appeal No(s). 5609-5610 of 2025) 28 April 2025 [Sudhanshu Dhulia and K. Vinod Chandran, JJ.] Issue for Consideration Matter pertains to the correctness of the order passed by the High Court, enhancing the compensation to Rs.45,14,986/- and directing deduction of half of the compensation under the Rules of 2006, i.e. Rs.21,67,704/- out of the total compensation. Headnotes† Motor Vehicles Act, 1988 – Haryana Compensation Assistance to the Dependents of Deceased Government Employees Rules, 2006 – Compensation – Deduction in respect to the financial assistance under 2006 Rules, if to be deducted from the total compensation – Deceased succumbed to injuries sustained in motor accident – Award of compensation of Rs.37,85,800/- by the tribunal to the claimants-legal heirs – Appeal by the Insurance Company on the deduction with respect to the financial assistance under 2006 Rules – Appeal by claimants for enhancement of compensation – High Court enhanced compensation to Rs.45,14,986/-, however, under conventional heads, reduced the award to Rs.70,000/-; and directed deduction of half of the compensation under the Rules of 2006, i.e. Rs.21,67,704/- out of the total compensation of Rs.45,14,986/- – Correctness: Held: Rules of 2006 permits the last drawn salary of the deceased to be continued to the family of the employee but for different periods dependent upon the age of the deceased – Proper method would be for tribunal considering the death of a government employee, to whom the Rules of 2006 is applicable, to first consider the loss of income, quantum of compensation with reference to loss of income and to deduct the pay and allowances payable under Rules of 2006 – If the compensation for loss of income arrived at under the M.V. Act is more, then necessarily the difference has to be paid to [2025] 4 S.C.R. 2595 New India Assurance Co. Ltd. v. Kamlesh and Others. the claimants – Deceased was earning for a family comprised of five persons, in which context, deduction for personal expenses would be 1/4th – Last drawn salary of the deceased should have been reckoned for the purpose of calculating the loss of income under the M.V. Act also – Considering the fact that no deduction for the income tax was made in the amounts entitled to the family of the deceased for 12 years, which would be deducted only from monthly payments, there could be no deduction made even while computing the loss of income from the last drawn pay, for income tax – Since the amounts payable under the Rules of 2006 is the last drawn pay in computing the loss of income under the M.V Act necessarily the future prospects will have to be added and the multiplier applicable would be 14 since the age of the deceased was 43 – Computation would be Rs.49,31,527/- from which the amounts payable as financial assistance under the Rules of 2006 will have to be deducted – Additional loss of income payable under the M.V. Act would be Rs.5,96,019/- to which loss of consortium for the widow and three children at Rs.1,60,000/- and loss of estate and funeral expenses of Rs.30,000/- would be added – Total compensation would be Rs.7,86,119/- .[Paras 13-17] Case Law Cited National Company Limited v. Pranay Sethi and Other [2017] 13 SCR 100 : (2017) 16 SCC 680 – followed. Reliance General Insurance Company Ltd. v. Shashi Sharma and Others [2016] 6 SCR 488 : (2016) 9 SCC 627 – relied on. New India Assurance Company Ltd. v. Ajmero and Others, FAQ No. 2648 of 2016; National Insurance Company Ltd. v. Birendra, 2020 SCC OnLine SC 28; Helen C. Rebello v. Maharashtra State Road Transport Corporation [1998] Supp. 1 SCR 684 : (1999) 1 SCC 90; Rajkumar Agrawal v. Vehicle Tata Venture, Commercial Auto Sales Private Limited, Civil Appeal No. 4941 of 2022; Western India Plywood Ltd. v. P. Ashokan [1997] Supp. 4 SCR 180 : (1997) 7 SCC 638; National Insurance Co. Ltd. v. Hamida Khatoon & Others [2009] 8 SCR 248 : (2009) 13 SCC 361; Regional Director, E.S.I Corpn. and Anr. v. Francis De Costa and Anr. [1992] 3 SCR 23 : (1993) Supp. 4 SCC 100; New India Assurance Co. Ltd. v. Sunita Sharma [2025] 4 SCR 603 : C.A. No. 5093 of 2025 @ SLP(C) No. 9515 of 2020; Krishna v. Tek 2596 [2025] 4 S.C.R. Supreme Court Reports Chand, SLP(C) No. 5044 of 2019; Sebastiani Lakra & Ors. v. National Insurance Company Ltd. & Anr. [2018] 13 SCR 1053 : (2019)
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