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Motor Accident Compensation LawSupreme Court of India

Kulwinder Kaur v. Parshant Sharma

Civil Appeal · 2025 INSC 950Decided 8 Aug 2025
C.A. No.-000820-000820 - 2019
Justice K. Vinod Chandran · Justice N.V. Anjaria

Background

A 31-year-old man, a US national self-employed as a driver/operator of a transport company in America, died in a road accident in India in 2007 when a truck struck the car he was travelling in. His widow, daughter, and other heirs sought compensation. The Motor Accident Claims Tribunal assessed his income at a low Rs. 5,000 per month for lack of proof of US wages, awarding only about Rs. 7.8 lakh, but the High Court, relying on US minimum wage data and his salary documents, enhanced his income to about Rs. 78,300 per month and the compensation to about Rs. 1.17 crore, while denying any addition for "future prospects" since he was self-employed.

Decision Breakdown

The Supreme Court upheld the High Court's income assessment as evidence-based and undisturbed since no cross-appeal was filed by the insurer, and rejected the claimants' request for a higher multiplier of 17 (holding 16 was correctly applied per binding precedent). However, it held that the High Court erred in denying the "future prospects" benefit merely because the deceased was self-employed and worked abroad, following the Constitution Bench ruling in National Insurance Co. v. Pranay Sethi, a self-employed person below 40 years is entitled to a 40% addition to income towards future prospects, and conventional heads (loss of estate, consortium, funeral expenses) must also be revised per Pranay Sethi's standardized figures. Recalculating on this basis, the Court raised the total compensation from about Rs. 1.17 crore to about Rs. 1.60 crore, an additional Rs. 42.95 lakh with 6% interest.

Lesson Learnt

The 40% "future prospects" addition to income laid down in Pranay Sethi applies to self-employed accident victims just as it does to salaried ones (with the standard age-based percentages), and it cannot be denied simply because the victim worked abroad or lacked a fixed salary.

Kulwinder Kaur v. Parshant Sharma – Legal Case Shots | LegalAware