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National Insurance Company Limited v. Pranay Sethi and Ors.

Special Leave Petition (Civil) · 2017 INSC 1068Decided 31 Oct 2017
Special Leave Petition (Civil) No. 25590 of 2014
Chief Justice Dipak Misra · Justice A.K. Sikri · Justice A.M. Khanwilkar · Dr. Justice D.Y. Chandrachud · Justice Ashok Bhushan

Background

This judgment answers a question of law; it does not decide the case itself. A two-judge Bench had referred to a larger Bench the question whether the formula in Sarla Verma or the later, partly conflicting formula in Rajesh v. Rajbir Singh should govern future prospects and other heads of compensation in motor accident death claims. The reference arose in National Insurance Company's case against Pranay Sethi and a large group of connected matters.

Decision Breakdown

This is not a final judgment in the case itself. A five-judge Bench resolved the conflict by laying down a revised, standardised formula. For self-employed persons it provided an addition of 40%, 25% or 10% for future prospects depending on the age bracket, and it fixed Rs. 15,000 for loss of estate, Rs. 40,000 for loss of consortium and Rs. 15,000 for funeral expenses. The Court answered the reference and directed that the matters be placed before the appropriate Bench, which is to apply the formula to the facts of each case.

Lesson Learnt

Motor accident death claims are to be calculated on a clearer, consistent formula for future prospects and fixed sums for the conventional heads. No compensation amount was awarded or denied to the claimants in this judgment itself.

Official source (sci.gov.in)View Judgment (PDF)

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