319/2021 Page 1 of 8 $~10 * IN THE HIGH…
Compensation enhanced from Rs.19,30,000 to Rs.23,02,400 (Rs.3,72,400) with 9% interest, payable by the Insurance Company with directions for release and FDRs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
$~10
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 06th July 2026
+ MAC.APP. 319/2021
BIBI MASUMA AND ORS .....Appellant
Through: Ms. Aruna Mehta, Mr. Lakshay Mehta, Advocates.
versus
MANOJ RAY AND ORS .....Respondents Through: Mr. Himanshu Bhushan, Ms. Shagun Srivastava, Advocates for Respondent no.3 (Insurance Company).
CORAM: HON'BLE MR. JUSTICE ANISH DAYAL
JUDGMENT
ANISH DAYAL, J (ORAL)
Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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‘ offending vehicle ’) being driven rashly and negligently from behind. Due to the impact of the accident, deceased fell down on the road and his head was crushed under the front wheels of the offending vehicle, resulting in his death.
Signature Not Verifi ed
Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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“ Guideposts
30. Principles which may be culled out from these cases cited above, and be used as guidepost for assessment of benchmark income, can be summarised as under:
A. Lack of documentary proof
i. In the informal sector, it may not always be possible to produce documentary proof of employment and payment of wages, which are usually paid in cash.
ii. Where there is lack of documentary proof to support that the victim was working in Delhi, reliance may be placed on facts and circumstances of the case to determine whether, the victim was residing in Delhi on the date of accident, in conjunction with documents such as driver’s
Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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license, voter ID card, etc. Minimum wages of place of work will be then considered.
iii. If documentary proof has not been filed, the Court can use the minimum wage benchmark of an appropriate category i.e., unskilled, skilled, matriculate, etc., as a benchmark for assessment, but not be constrained to grant the lowest tier. B. Oral testimony of family members, employers i. Assessment of income can also be done on the statement of the immediate legal heir of deceased, i.e., wife, father, or immediate family member, along with a statement of the employer, if any. Testimonies of the above-mentioned persons should be consistent and there should be an unsuccessful rebuttal by the Insurance Company or the contesting party.
ii. If the testimonies are not reliable, the Court can use the minimum wage benchmark of an appropriate category i.e., unskilled, skilled, matriculate, etc., as a benchmark for assessment, but not be constrained to grant the lowest tier. C. Proof of employment
i. If documents in support of employment inter alia, Salary/Wage Certificate, Income Tax Returns (‘ITRs’) have been filed, same shall be considered. ii. In the absence of such proof, assessment done by the Court has to be based on some intelligent guesswork and may not be restricted to the minimum wage parameter after taking into account a holistic analysis of the evidence on record. For example, place of employment, testimony of co-workers, or any other person who testifies in favour of the injured/deceased employee. iii. The entire assessment is ultimately imbued with an element of approximation and guesswork, as part of the inquiry proceedings and not on exactitude.
iv. Reliance may be placed on State specific legislations, as well as Minimum Wage
Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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Notifications to lean on for support, in order to determine what qualifies as a skilled worker and an unskilled worker, with respect to the vocation of the victim.
D. Age, occupation and educational background of the victim
i. In cases where the victim was a student and the evidence on record suggests that the victim would have engaged in employment after completing education, had the accident not taken place; the Courts must consider the educational background keeping in view the missed future opportunities. ii. Reliance to be placed on documents and testimonies indicating the prior educational background of the victim, if no proof has been placed with regards to the employment details.
E. Standard of living of deceased persons
i. When a claim petition has been filed by the surviving dependents of a deceased, where the deceased was the breadwinner of the family, Courts must attempt to ascertain the benchmark income keeping in view the void left by the breadwinner’s death and income must be determined keeping in view the standard of living enjoyed by the family before the accident took place. While monetary compensation is a means to filing the financial hole left by the deceased, an estimate may be required to be done in order to support the remaining family members.
31. Needless to say, these are merely guidepost, illustrative and not exhaustive. However, there is no denying that individual cases would turn on its own peculiar facts. ”
(emphasis added)
Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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13. Accordingly, revised computation is as under:
| S. No. |
Heads |
Awarded by the Tribunal |
Awarded by this Court |
|---|---|---|---|
| 1 | Income of deceased (A) | Rs. 8,632/- | Rs. 10,478/- |
| 2 | Add: Future Prospects (B) | Rs. 3,452.8/- | Rs. 4,191.2/- |
| 3 | Less: Personal expenses of deceased (C) |
Rs. 3,021.2/- | Rs. 3,667.3/- |
| 4 | Loss of dependency (A+B)-C=D | Rs. 9,063.6/- | Rs. 11,002/- |
| 5 | Annual loss of dependency (Dx12) = (E) |
Rs. 1,08,763.2/- | Rs. 1,32,024/- |
| 6 | Multiplier(F) | 16 | 16 |
| 7 | Total loss of dependency (E x F)= (G) |
Rs. 17,40,200/- (rounded off) |
Rs. 21,12,384/- |
| 8 | Compensation for loss of consortium (H) |
Rs. 1,60,000/- | Rs. 1,60,000/- |
| 9 | Compensation for loss of estate (I) |
Rs. 15,000/- | Rs. 15,000/- |
| 10 | Compensation towards funeral expenses (J) |
Rs. 15,000/- | Rs. 15,000/- |
| 11 | Total compensation (G+H+I+J) =K |
Rs. 19,30,000/- (rounded off) |
Rs. 23,02,400/- (rounded off) |
| 12 | Rate of Interest Awarded | 9% | 9% |
Directions
Signature Not Verifi ed Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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thereafter. R emaining enhanced amount, along with accrued interest, shall be kept in Fixed Deposit Receipts ( FDRs ) of Rs.25,000/- each for periods of 3 month, 6 months, 9 months and so on, in succession as maybe calculated. Interest accruing on said FDRs shall be credited to the designated Savings Bank Account of appellants/claimants. The amount of FDRs on maturity would be released to the Savings Bank Account of appellants/claimants upon due verification.
(ANISH DAYAL) JUDGE
JULY 6, 2026/ ak/ sp
Signature Not Verifi ed
Digitally Signed By:RAHUL MAC.APP. 319/2021 KUMAR CHOUDHARY Signing Date:10.07.2026 16:17:51
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1 issue framed by the court
Whether loss of dependency should be computed on the wages of a skilled mason rather than the minimum wages of an unskilled worker despite absence of documentary proof of income.
Colour shows how this judgement treated each authority
Savita & Ors. v. National Insurance Company Ltd.Relied on¶11
Savita & Ors. v. National Insurance Company Ltd., 2026:DHC:3626
Bibi Masuma
Bibi Masuma and Ors
Manoj Ray
Respondent no.3 - Insurance Company
Anish Dayal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
