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Synopsis

The Supreme Court has said that if the deceased in a motor accident held a permanent job and fell in the age between 40 to 50 years, 30% addition to the actual salary is to be made for calculation of the compensation to be paid to the dependents.

A bench of Justices C T Ravikumar and Sanjay Karol allowed an appeal filed by one Rojalini Nayak and others and modified the judgment of the Orissa High Court by directing the payment of Rs 10,06,900 to the appellants.

The appellants, the wife of deceased Bichitra Nayak alias Bagula, and their two sons, assailed the correctness of the High Court's order.

The deceased was employed as a ‘Khalasi’ in an ambulance. On June 4, 2010, while the ambulance was on its way from Chandikhol to Paradeep, it collided with the back of a truck. The driver of the vehicle, namely, Prakash Palei sustained grievous injuries and the husband of the claimant-appellant, died on the spot. 

At the time of death, the deceased, an employee of ESSAR Steel Orissa Limited, aged 44 years, was earning Rs 5,000 per month. 

The Motor Accident Claims Tribunal noted that after the accident, the owner of the ambulance paid a sum of Rs 6,25,000 towards compensation to the bereaved family. 

The Tribunal held the claim petition was not maintainable. It also said that no rash and negligent act could be attributed to the driver of the truck which resulted in the death of the claimant-appellant’s husband. Consequently, no liability could be fastened on either the owner or the insurer of the truck to compensate the claimant-appellants. 

On appeal, the High Court raised the compensation amount by Rs 2,05,000 to be paid by both the insurers and the owner along with interest at the rate of 6% per annum.

The claimant-appellants preferred the instant appeal. However, the owner and insurer of the offending vehicle accepted the findings.

Going by the High Court's order, the bench noted it deducted 1/3rd towards personal expenses. However, a perusal of 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, it said.

In regard to future prospects, the court noted, that the High Court had taken 25% in addition the actual salary, where as 30% addition was to be applied.

The bench cited the Constitution Bench decision in 'National Insurance Co Ltd Vs Pranay Sethi (2017) which held that if the deceased is holding permanent job, 30% addition to the actual salary is to be made when the age of the deceased is between 40 to 50 years. 

The court accepted the submission of the counsel for the claimant-appellants in this regard.

In respect of loss of consortium towards four persons, the High Court has awarded Rs 1,00,000, which, the bench found was not to be in consonance with Pranay Sethi.

The court also enhanced the amount under the heads of loss of estate, loss of consortium and funeral expenses. It thus computed the total compensation as Rs 10,06,900. 

The court directed for payment of remaining Rs 3,81,900 with interest at the rate of 7.5 percent.

Case Title: Rojalini Nayak & Ors Vs Ajit Sahoo & Ors