Family Of Graphic Artist Killed In Crash Wins Rs 17.43 Lakh More As Gujarat HC Counts His Allowances As Income

On 23 November 2013, a collision between a motorcycle and a truck killed the motorcycle rider, aged 26, who worked as a graphic artist.

His wife, minor child and mother filed a claim petition.

The Tribunal found the truck driver solely responsible and awarded Rs.21,04,000, assessing the deceased’s monthly income at Rs.9,218.

The insurer did not challenge the findings on negligence or quantum; the claimants appealed, arguing that the deceased’s full monthly remuneration of Rs.19,181, shown in his service agreement, should have been considered.

The Court applied the principle that, apart from professional tax, allowances forming part of the deceased’s emoluments should not be excluded when determining income for compensation.

It applied a multiplier of 17 for the deceased’s age of 26.

Relying on National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, assessed consortium and other conventional heads.

The service agreement recorded a gross salary of Rs.8,000 and additional components, including bonus, leave encashment, allowances and employer contributions, bringing the monthly total to Rs.19,181.

Applying the rule that such emoluments could not be excluded except for professional tax, the Court substituted Rs.19,181 for the Tribunal’s income assessment.

It then added 40% for prospective income, deducted one-third for personal expenses, applied a multiplier of 17, and added compensation for consortium, loss of estate and funeral expenses, resulting in total compensation of Rs.38,47,063.

The claimants were awarded an additional Rs.17,43,063, with interest at 9% per annum from the date of the claim petition until realization.

The insurer was directed to deposit the enhanced amount within ten weeks of receiving the order, for disbursement to the claimants upon verification by NEFT/RTGS.