Uttarakhand High Court Upholds ₹64.6 Lakh Award For Woman’s Death In Crash, Dismisses Insurer’s Salary Challenge

On 10 June 2016, Reeta Dagar was travelling in a Tata Magic when it collided with a car allegedly driven negligently, causing the Tata Magic to overturn. Dagar sustained fatal injuries.

The Motor Accident Claims Tribunal awarded her claimants ₹64,60,360, with interest at 7.5% per annum. The insurer appealed, disputing the Tribunal’s assessment of Dagar’s monthly income as ₹35,751, contending it should have been ₹31,648, and objecting to the inclusion of allowances and other salary components in the income calculation.

The claimants supported the award, relying on authenticated salary records and the Tribunal’s application of the principles in National Insurance Co. Ltd. v. Pranay Sethi.

The Court referred to the principles in National Insurance Company Limited v. Pranay Sethi, (2017) 16 SCC 680, concerning the assessment of just compensation, including additions for future prospects and compensation under conventional heads.

It also stated that income must be assessed by reference to the relevant documentary evidence, having regard to the nature of the payments comprising the deceased’s remuneration.

The judgment identifies no specific statutory provision as the basis of its decision.

The Court considered the insurer’s challenge to the income assessment and its objection to the inclusion of allowances against the documentary evidence and the governing compensation principles.

It concluded that the insurer had not demonstrated any material illegality, perversity, or other infirmity in the Tribunal’s assessment warranting appellate intervention.

The judgment does not set out a separate calculation or explain in detail how particular salary components were treated.

Any statutory amount deposited by the insurer on filing the appeal is to be remitted to the Tribunal for adjustment against the award; any remaining balance is to be released to the claimants in accordance with the Tribunal’s directions.