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Supreme Court of India 2017-03-07 dismissed

National Insurance Co. Ltd vs Rekhaben & Ors

Bench: 2 — S.A. Bobde

In Brief

The Supreme Court held that when claimants (dependents of deceased or injured employees) are given compassionate employment by the employer, the salary they earn from such employment cannot be deducted from motor accident compensation awarded under the Motor Vehicles Act. Since the tort feasor (vehicle owner/insurer) is different from the employer offering compassionate appointment, there is no correlation between these two sources. Compassionate employment provides earned income from the claimant's own labour, not compensation for lost earnings. The Court rejected the insurer's argument that such salary offsets the loss of income, emphasizing that beneficial motor accident legislation should not be narrowly construed to reduce claimants' entitlements.

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Motor Vehicles Act Compensation Tort Liability Motor Accident Claims Insurance Damages Assessment Compassionate Appointment

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