Summary
The Supreme Court enhanced fatal-accident compensation to Rs.50 lakh with nine-percent annual interest from the claim petition until payment. Payments under the employer’s family-benefit scheme were not deductible because the dependants had funded that scheme by depositing gratuity and other benefits. On the peculiar facts, its additional advantage nevertheless justified declining a separate fifteen-percent future-prospects addition. The insurer could adjust amounts already paid.
Issues
- Whether payments under the employer’s family-benefit scheme were deductible from accident compensation.
- Whether future prospects should be added and what compensation was just on the facts.
Held
- Insurance proceeds, earned pension and gratuity, investments and comparable benefits independent of accidental death ordinarily could not reduce the tortfeasor’s liability. Deductibility required the necessary correlation with accidental death; the Court distinguished the statutory salary-assistance scheme considered in Shashi Sharma. (¶¶ 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16)
- The family-benefit payments here followed deposit of Rs.27,43,991 from gratuity and other death benefits. Their funding and limited duration distinguished them from the earlier statutory assistance scheme, so they were not deductible. (¶¶ 17, 18, 19, 20)
- In the peculiar circumstances, the additional advantage under that scheme more than offset the claimed future prospects. The Court declined a separate fifteen-percent addition rather than deducting the scheme payments from dependency compensation. (¶ 21)
- After an estimated tax deduction, monthly income was assessed at Rs.56,000, one-third deducted for personal expenses and multiplier eleven applied. Conventional heads brought the total to Rs.49,97,956, rounded to Rs.50 lakh, with nine-percent interest from petition until payment and adjustment for amounts already paid. (¶ 22)
- The appeals were allowed on those terms and pending applications disposed of. (¶ 23)
Result
Appeals allowed; compensation enhanced to Rs.50 lakh with interest at nine percent per annum from filing of the claim petition until payment, subject to adjustment of amounts already paid. No separate future-prospects addition on these peculiar facts.