15 May 2025 Motor Accident >> Family Law  

In Hansa Devi & Others v/s Sbi General Insurance Company Limited & Another., the Supreme Court has overturned a High Court's decision that significantly reduced the compensation awarded to the family of a truck driver who died in a motor accident. The deceased, a 28-year-old truck driver, was fatally struck by another truck in 2014 while boarding his own parked vehicle. His family, consisting of his widow, three minor children, and parents, sought compensation.

The Motor Accidents Claims Tribunal initially awarded Rs. 23,07,000, accepting the family's claim of the deceased's monthly income as Rs. 10,000 and applying standard deductions and future prospects. This amount included compensation for loss of consortium to the wife, children, and parents, along with funeral expenses and loss of estate.

However, the Insurance Company appealed to the High Court, which drastically reduced the compensation to Rs. 12,34,105, primarily by lowering the deceased's monthly income to Rs. 4,076 based on minimum wages. The High Court also reduced the consortium amount.

The Supreme Court, referencing previous rulings, found no justification for reducing the deceased's income. It reasoned that even an unskilled laborer in 2004 earned Rs. 4,500, and by 2014, an income of Rs. 10,000 for a heavy vehicle driver was reasonable. The Court also affirmed that children and parents are entitled to compensation for loss of consortium.

Since the claimants did not appeal the Tribunal's award, the Supreme Court decided not to enhance the compensation beyond the original amount. Instead, it fully restored the Tribunal's award, directing the insurance company to disburse the Rs. 23,07,000 with interest to the family within two months. The compensation is to be equally apportioned among the wife, children, and parents, with the shares of minor children to be held in fixed deposits, and the interest disbursed to the mother as guardian.