If Deceased’s Job Is Permanent, 30% Addition To Actual Salary Is Made When His Age Is Between 40-50 Years: SC In Motor Accident Compensation Claim Case
The Supreme Court reiterated that if the deceased is holding a permanent job, a 30% addition to the actual salary is to be made when the age of the deceased is between 40 to 50 years.
The Court was hearing an Appeal that questioned the correctness of the final judgment and order passed by the High Court that was rendered in an appeal arising out of the judgment passed by the Third Motor Accident Claims Tribunal.
The bench of Justice C.T. Ravikumar and Justice Sanjay Karol noted that in regard to future prospects, the High Court has taken 25% in addition to the actual salary and relied on the Constitution Bench decision in National Insurance Co. Ltd. v. Pranay Sethi which according to the Court held, “if the deceased is holding a permanent job, 30% addition to the actual salary is to be made when the age of the deceased is between 40 to 50 years.”
Brief Facts-
The claimant-appellants, the wife and other family members of the deceased Bichitra Nayak, who died in an ambulance-truck collision were seeking compensation. The deceased was employed by ESSAR Steel Orissa Limited and was earning Rs.5,000 per month. The Tribunal dismissed the Claim Petition after it found that there was no negligence by the truck driver. However, the High Court recalculated compensation and directed insurers to pay Rs.2.05L with 6% interest. It is the claim of the claimants in the present appeal that the deduction for personal expenses should be 1/4th, not 1/3rd.
The Court noted that the High Court deducted 1/3rd towards personal expenses however, the affidavit filed by the wife of the deceased before the High Court showed four dependents on the deceased hence the deduction has to be by 1/4th and not 1/3rd as directed by the High Court.
Relying on the abovementioned decision the Court allowed the Appeal.
Cause Title: Rojalini Nayak v. Ajit Sahoo (Neutral Citation: 2024 INSC 584)