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Sumathy and Others vs. Babu and Another

Civil Appeal · 2022 INSC 985Decided 19 Sept 2022
Civil Appeal Nos. 6609-6610 of 2022
M.R. Shah · Krishna Murari

Background

A mason aged about 48-52 died in a road accident in 2002. His widow and dependent children sought compensation before the Motor Accident Claims Tribunal in Kerala, which awarded about Rs. 3.05 lakh based on a monthly income of Rs. 1,800. The Kerala High Court raised this to about Rs. 3.92 lakh, taking his income at Rs. 3,000 per month. The family appealed to the Supreme Court seeking a further increase.

Decision Breakdown

The Supreme Court held that even accepting the High Court's income figure of Rs. 3,000 per month, the calculation should also have added 25% for future prospects and likely rise in income before working out the loss to the family, something the High Court had missed. Recalculating on that basis, the Court enhanced the total compensation to Rs. 4,25,000, with 9% interest from the date the claim was filed, and directed the insurance company to pay the balance within eight weeks.

Lesson Learnt

In motor accident claims, courts must add an amount for the deceased's likely future rise in income before calculating loss of dependency, even where the deceased was a low-income, self-employed worker, omitting this results in under-compensation.

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

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