Amit Kanojia & Ors. Vs Ram Singh & Ors. ( National… — Motor Accident Claims | Delhi HC (2026)

Amit Kanojia & Ors. Vs Ram Singh & Ors. ( National… — Motor Accident Claims | Delhi HC (2026)

What the court decided

AI extract

Outcome

Since both appeals stand dismissed and the MACT's impugned award stands confirmed, the complete amount of compensation, along with accrued interest till date, is to be released to the claimants as per the directions of the MACT in the impugned award (superseding the earlier arrangement of 50% disbursement and 50% FDRs); statutory deposit, if any, to be refunded to the Insurance Company only if the order of deposit has been complied with; pending applications, if any, rendered infructuous.

Issue for consideration

Whether the 50% addition towards future prospects in the loss of dependency computation should be disallowed on the ground that the deceased was not in permanent employment (Insurance Company's plea). +3 more

Court's answer

Future prospects at 50% in the loss of dependency are upheld: the deceased is treated as being in permanent employment, having worked with Dr. Oetker India Pvt. Ltd. (a well-reputed international food company) since 2006 — ten years by the accident date of 15 June 2016 — as Assistant General Manager with Cost to Company of about Rs.17,50,000/- per annum (Exhibits PW3/3, PW3/4 and PW3/5 evidencing CTC, increment of 28 April 2016 and regular participation in company workshops); the Insurance Company's plea against future prospects is accordingly rejected.

Ratio / Principle

Income for loss of dependency properly includes allowances that enure to the benefit of the family, including 'transport allowance', as held in the Supreme Court decisions in National Insurance Co. Ltd. v. Indira Srivastava & Ors. (2008) 2 SCC 763, National Insurance Co. Ltd. v. Nalini, 2024 SCC OnLine SC 2252 and Meenakshi v. Oriental Insurance Co. Ltd., 2024 SCC OnLine SC 1872; consequently the Insurance Company's plea to deduct 'conveyance allowance' is rejected.

Key takeaways

The Court declines the claimants' request to include the share capital received in the form of shares during the deceased's employment: loss of dependency is calculated primarily on the regular and consistent income received by the deceased, and issuance of shares and one-time bonuses cannot be considered consistent and regular income for that purpose.ratio¶¶20
The interest component is left undisturbed (rate of 9% retained; insurer sought revision to 7.5%): Section 171 of the Motor Vehicles Act, 1988 empowers the MACT to exercise discretion in awarding simple interest based on case-specific facts, and the compensation is just and reasonable given that the deceased is survived by two daughters and two senior aged parents.ratio¶¶25

Detailed headnote1 paragraphs

Cross-appeals in a motor accident death case — MAC.APP. 926/2018 (National Insurance Co Ltd seeking reduction) and MAC.APP. 8/2019 (claimants Amit Kanojia & Ors. seeking enhancement) — against the Award dated 31 July 2018 of MACT, East District, Karkardooma Courts, Delhi in MAC Suit No. 684/2016 (accident 15 June 2016; deceased employed with Dr. Oetker India Pvt. Ltd. since 2006 as Assistant General Manager, CTC about Rs.17,50,000/- p.a.): BOTH APPEALS DISMISSED; MACT award confirmed. (i) Future prospects at 50% in loss of dependency upheld — deceased regarded as in permanent employment (ten years' service, increment of 28 April 2016, regular participation in company workshops per Exhibits PW3/3–PW3/5), taking into account the view of this Court in Oriental Insurance Co. Ltd. v. Sneha Lata & Ors., 2026:DHC:2689, which relied on Anjum Ansari v. R. Rajesh Rao, 2024 SCC OnLine MP 9613. (ii) Plea to deduct 'conveyance allowance' rejected — allowances benefiting the family, including 'transport allowance', are to be included in income, per National Insurance Co. Ltd. v. Indira Srivastava & Ors., (2008) 2 SCC 763, National Insurance Co. Ltd. v. Nalini, 2024 SCC OnLine SC 2252 and Meenakshi v. Oriental Insurance Co. Ltd., 2024 SCC OnLine SC 1872. (iii) Share capital received in the form of shares and one-time bonuses EXCLUDED — loss of dependency computed only on regular and consistent income. (iv) Interest retained at 9% (insurer sought 7.5%) — Section 171, Motor Vehicles Act, 1988 vests discretion in the MACT to award simple interest on case-specific facts; deceased survived by two daughters and two senior aged parents. Interim deposit directions of 12 October 2018 (full deposit with Registrar General; 50% disbursed, 50% in FDRs) give way to release of the complete compensation with accrued interest to the claimants per MACT directions; statutory deposit refundable to insurer subject to compliance.