Hansa Devi vs SBI General Insurance Co. Ltd.
- Neutral2025 INSC 706
Ratio decidendi
The rule this decision rests on
1. In assessing the income of a deceased driver in a motor accident compensation claim, the court will accept the income claimed by the claimants before the Tribunal where it is reasonable in relation to established benchmarks; specifically, where a coolie earned Rs. 4,500/- in 2004, an incremental increase of Rs. 500/- per year would justify an unskilled labourer or driver earning approximately Rs. 10,000/- per month in 2014, and the High Court cannot arbitrarily reduce this to statutory minimum wages without justification. 2. Children and parents of a deceased, in addition to the surviving spouse, are entitled to claim and receive compensation for loss of consortium in motor accident claims under the applicable law. 3. Where claimants do not appeal against the Tribunal's award of compensation and the insurance company's appeal results in an unjustified reduction by the High Court, the Supreme Court will restore the Tribunal's award without enhancement, as there is no basis for the claimants to seek more than what they originally claimed. 4. Compensation awarded by a Tribunal in a motor accident claim shall be disbursed with interest within the stipulated period, and where minor children are beneficiaries, their share shall be deposited in a fixed deposit with interest disbursed to the mother as guardian until the children attain majority.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2. The appellants are the legal representatives of the deceased in a motor accident; the widow, three minor children and parents. The deceased was the driver of a truck in which a helper/cleaner was accompanying him. The driver had alighted after parking the truck and Jayant Kumar Arora when he was boarding the truck, another truck SLP (C) No.10822 of 2021 driven rashly and negligently hit him and he died on the spot. The helper/cleaner who was PW2 before the Tribunal, admitted him to the hospital and gave a First Information Statement leading to the registration of an FIR. The claimants were before the Tribunal seeking compensation for the death of the bread winner of the family who was 28 years old when he met with the accident and succumbed. The Tribunal awarded a total amount of Rs.23,07,000/- to the dependents adopting the salary claimed of Rs.10,000/- and reducing 1/3rd for personal expenses while taking 3/4 th of 40% of the income of the deceased as future prospects. The wife was granted loss of consortium @ Rs.40,000/-, the children @ Rs.25,000/- each and the parents @ Rs.10,000/- each. The funeral expenses and loss of estate was also awarded @ Rs.15,000/- each.
SLP (C) No.10822 of 2021 3. The Insurance Company filed an appeal before the High Court in which there was considerable deduction made especially on the salary, which was reduced to Rs.4,076/- adopting the minimum wages for a driver @ Rs.5,434/- with 40% future prospects. The claimants were granted only Rs.40,000/- towards loss of consortium. The amount awarded was reduced to Rs.12,34,105/-.
4. We find no reason to accede to the reduction of income as done by the High Court. The accident occurred on 08.05.2014. In Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd1 this Court held that even a coolie would get an income of Rs.4,500/-in the year 2004. Hence, an unskilled labourer considering the marginal and incremental increase in each successive year @ Rs.500/- per year would be entitled to get
1 (2011) 13 SCC 236
SLP (C) No.10822 of 2021 almost Rs.10,000/- in the year 2014. Hence, the claim made before the Tribunal with respect to the driver of heavy vehicle getting Rs.10,000/- as wages per month must be necessarily accepted. Insofar as the loss of consortium, it has been held in New India Assurance Company v. Somwati and Ors.2 that even the children and the parents are entitled to compensation for loss of consortium.
5. Since no appeal is filed by the claimants from the award of the Tribunal, we do not think there is any enhancement required. Still the award made as compensation for loss of consortium to the children and the parents by the Tribunal has to be retained. On the above reasoning, we set aside the order of the High Court restoring the order of the Tribunal. The amounts, with interest, as awarded by the Tribunal shall be disbursed to the claimants
2 (2020) 9 SCC 644
SLP (C) No.10822 of 2021 within a period of two months, which shall be equally apportioned in the name of the wife, children and parents. If any of the minor children have not attained majority, the amount shall be kept in a fixed deposit, the interest of which can be disbursed to the mother who is the guardian. The insurance company shall deposit the amounts within the period stipulated before the Tribunal and the Tribunal shall apportion the amounts as directed hereinabove.
6. The appeal is allowed.
7. Pending applications, if any, shall stand disposed of.
...……….……………………. J.
(SUDHANSHU DHULIA)
………….……………………. J.
(K. VINOD CHANDRAN)
NEW DELHI;
MAY 15, 2025.
SLP (C) No.10822 of 2021
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free