The Supreme Court enhanced compensation for a motor accident death victim, rejecting the High Court's arbitrary reduction of deceased's income and affirming the award based on actual family dependents.
Award enhanced to Rs. 20,80,000/- payable within three months with interest at 6% from the date of application.
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.
2025 INSC 1093
Non-reportable
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.11425 OF 2025
(@ Special Leave Petition (Civil) No. 1733 of 2021)
Smt. Manjula & Ors.
…Appellants
Versus
The Branch Manager Oriental Insurance Company Ltd. Bijapur & Anr.
…Respondents
J U D G M E N T
K. VINOD CHANDRAN, J.
Four friends from Bijapur were on a pilgrimage to Shirdi when the car in which they were travelling, driven by one of them, was hit by a goods’ lorry driven rashly and negligently coming from the opposite direction on the NH-13 Bijapur-Horti Road. All the persons travelling
Signature Not Verified Digitally signed by VARSHA MENDIRATTA Date: 2025.09.09 17:50:20 IST Reason:
in the car died on the spot. Four claim petitions were filed
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before the Tribunal and four appeals were filed seeking enhancement of compensation, to which appeals cross objections were filed by the Insurance Company. The appellate order which is impugned in the present appeal by the claimants in one of the claim petitions seek enhancement of income and a better award than that granted by the Tribunal, since the High Court reduced the quantum of income without any reason.
challenge is only to the quantum and though in the judgment of the Tribunal from which the present appeal arises, the deceased-husband of the first claimant was found to have a monthly income of Rs.6,000/-, without any
reasoning and without reliance to any material, the High
Court reduced it to Rs.5,500/-. The total amount was enhanced, since addition was made to the future
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prospects in tune with the Constitution Bench judgment in National Insurance Co. Ltd. v. Pranay Sethi1 .
a medical shop, partnership in a pharmaceutical distributorship and Director of a Cooperative Bank. The learned Counsel appearing for the Insurance Company, however, pointed out that none of these tall claims were substantiated.
1 (2017) 16 SCC 680
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diploma in Pharmacy. The claim of running a medical shop was not proved since his licence was cancelled on 11.02.2008 while the accident took place on 25.07.2010.
The distributorship run through a partnership was proved, but not the income since the various documents produced were found by the Tribunal to be not authenticated; nor were the alleged partners examined.
The claim of Directorship in a Cooperative Bank and monthly sitting fees obtained, was also not fully substantiated. It was in this situation that the Tribunal adopted a monthly income of Rs. 6,000/- which the High Court reduced, without any basis, to Rs.5,500/-.
Coolie would be earning an amount of Rs.4,500/- in a month. If incremental increase is made of Rs.500/- per
2 (2011) 13 SCC 236
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year, it can be safely assumed that a Coolie in the year 2010, when the subject accident occurred, would have obtained an income of Rs.7,500/-. The deceased herein has been proved to have a diploma in Pharmacy though the exact remuneration is not substantiated. He is found to be in a partnership of pharmaceutical distributorship and associated with a Cooperative Bank. The deceased was also running a medical shop, though prior to the date of the accident the licence stood cancelled. Considering the overall circumstances, it can be safely assumed that
the deceased would have obtained a monthly remuneration of Rs.12,000/- to look after the family of five comprising of himself, his wife, minor daughter and two parents.
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with the decision in Pranay Sethi1 . The 1/4th deduction made also is correct since his family consisted of 4 dependants. The loss of estate and funeral expenses has to be at Rs.15,000/- each as per the Constitution Bench decision. Insofar as the loss of consortium not only the wife as per New India Assurance Company v. Somwati and Ors.3 the children and the parents also are entitled at the rate of Rs.40,000/- each. The award hence shall be as per the tabulated list below:-
| S. No. | Particulars | Amount |
|---|---|---|
| 1. | Loss of income @ Rs.12,000/- p.a. (12,000 x 12 x ¾ x 14 x 125%) |
Rs.18,90,000/- |
| 2. | Funeral expenses | Rs. 15,000/- |
| 3. | Loss of estate | Rs. 15,000/- |
| 4. | Loss of consortium @ Rs.40,000/- | Rs. 1,60,000/- |
| (Rs.40,000/- x 4) | ||
| Total | Rs.20,80,000/- |
3 (2020) 9 SCC 644
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7. The award amount shall be paid after deducting
what is already paid with interest @ 6% from the date of application as determined and apportioned by the Tribunal within a period of 3 months from today.
……….…………………….….. J. (K. VINOD CHANDRAN)
……….…………………….….. J.
(N.V. ANJARIA)
NEW DELHI; SEPTEMBER 9, 2025.
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3 issues framed by the court
Whether the quantum of monthly income for assessment of compensation was correctly reduced by the High Court without factual basis.
What should be the correct multiplier, future prospects, and deduction for loss of estate and funeral expenses in this case.
What is the total compensable amount including loss of consortium for family members.
Colour shows how this judgement treated each authority
National Insurance Co. Ltd. v. Pranay SethiFollowed¶2
(2017) 16 SCC 680 · Who else cites this
Ramachandrappa v. Royal Sundaram Alliance Insurance Co. Ltd.Followed¶35
(2011) 13 SCC 236 · Who else cites this
New India Assurance Company v. Somwati and Ors.Followed¶45
(2020) 9 SCC 644 · Who else cites this
1 provisions across 1 enactments
Smt. Manjula & Ors.
The Branch Manager Oriental Insurance Company Ltd. Bijapur & Anr.
K. VINOD CHANDRAN
N.V. ANJARIA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
