Gujarat HC Enhances Deceased Banker’s Family’s Award By ₹27.87 Lakh, Holds Truck Driver Solely Responsible For Fatal Crash

On 20 August 2008, a car driven by the deceased collided with a truck that was stationary on the road, resulting in the car driver’s death.

The Tribunal attributed negligence 75:25 to the truck and car drivers, assessed the deceased’s monthly income by averaging his preceding three years’ income-tax returns, and awarded compensation of Rs. 43,45,110. Both the truck’s insurer and the claimants appealed. The claimants challenged the finding of contributory negligence and the income assessment; the insurer argued that the car driver was wholly responsible because the car struck the truck from behind

Under Mangla Ram v. The Oriental Insurance Co., 2018 (5) SCC 656, the Court relied on the evidentiary significance of a chargesheet against a driver, particularly where that driver is not examined, in assessing responsibility for an accident.

For a salaried employee, compensation is assessed using the salary drawn at the time of the accident; future prospects are added in accordance with National Insurance Co. Ltd. v. Pranay Sethi, AIR 2017 SC 5157. The Court applied a 50% addition for future prospects for a deceased aged 32 in permanent employment, a one-third deduction for personal expenses, and a multiplier of 16.

It applied Pranay Sethi, read with Reena v. Managing Director, Karnataka State Road Transport Corporation, 2026 (0) AIJEL-SC 77486, to award conventional sums for consortium, loss of estate, and funeral expenses.

The truck was stationary on the road, the police had filed a chargesheet against its driver on the basis that the truck should not have been parked there, and the driver was not examined to rebut the case against him. Applying Mangla Ram, the Court held that the truck driver alone was responsible and set aside the 25% negligence attributed to the deceased.

On quantum, the deceased was a salaried bank employee, and the evidence established a monthly salary of Rs. 36,403. The Court therefore used that actual salary, rather than the three-year average, and applied the prescribed future-prospects addition, deduction, and multiplier. It assessed total compensation at Rs. 71,32,376, including the conventional heads.

The claimants’ appeal was partly allowed, and the insurer’s appeal was dismissed. The claimants were awarded an enhanced Rs. 27,87,266, with interest at 9% from the date of the claim petition until realization. ICICI Lombard General Insurance Co. was directed to deposit the enhanced amount within eight weeks; disbursement was ordered upon verification by NEFT/RTGS.