In Brief
A widow and family of a deceased employee, or the injured spouse, sought motor accident compensation after fatal or disabling collisions caused by insured vehicles. The insurance company argued that salaries earned by dependents through compassionate employment appointments offered by the deceased's employer should be deducted from the compensation award. The Supreme Court held that such deduction is impermissible. Income earned through the claimant's own labour from compassionate employment, offered by a separate entity (the employer) not the tortfeasor, cannot offset the statutory compensation owed for the accident-caused loss. The Motor Vehicles Act is beneficial legislation meant to provide full compensation to accident victims and their dependents.
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