Punjab Police Head Constable’s Family Gets ₹34.9 Lakh More As P&H HC Raises Death Compensation To ₹72.7 Lakh

Bachan Singh, a Head Constable in the Punjab Police, died in a road accident on 26 November 2015. His widow, two sons, daughter and mother sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal awarded Rs.37,80,040 with interest at 8% per annum, assessing monthly income at Rs.46,000, applying a one-third deduction for personal expenses and a multiplier of 10, and making no addition for future prospects. The claimants appealed under Section 173, seeking enhancement; the findings on negligence and insurer liability were not challenged and were treated as final.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal from an award of a Claims Tribunal, while Section 166 provides the basis for a claim arising from a motor-vehicle accident.

Under National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, future prospects are added to established income in accordance with the deceased’s employment and age, and conventional heads are assessed on a standardized basis.

Under Sarla Verma v. Delhi Transport Corporation, (2009) 6 SCC 121, the personal-expense deduction depends on the number of dependants and the multiplier is determined by the deceased’s age; for four to six dependants the deduction is one-fourth, and for ages 46–50 the multiplier is 13.

The Court also relied on United India Insurance Co. Ltd. v. Satinder Kaur, 2020 (11) SCC 1, regarding conventional heads, and Smt. Supe Dei v. National Insurance Co. Ltd., (2009) 4 SCC 513, as approved in Puttamma v. K.L. Narayana Reddy, 2014 (1) RCR (Civil) 443, in enhancing interest.

The Court accepted the Tribunal’s assessment of monthly income at Rs.46,000 but found that the deceased’s permanent government employment entitled the claimants to a 30% addition for future prospects, taking monthly income to Rs.59,800.

As the Tribunal had treated all five claimants as dependants, the personal-expense deduction was reduced from one-third to one-fourth; given the deceased’s age of about 50, the multiplier was increased from 10 to 13.

The Court awarded the prescribed sums for loss of estate and funeral expenses, and consortium for each of the five claimants, producing total compensation of Rs.72,72,600.

It considered 8% interest inadequate and enhanced the rate to 9% per annum.

If the amount was not paid within three months, 12% interest would apply thereafter from expiry of that period. Amounts already paid were to be deducted, and the Tribunal’s apportionment among the claimants remained unchanged.