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Supreme Court of India 2020-01-13 partly_allowed

NATIONAL INSURANCE COMPANY LTD vs BIRENDER

Bench: 2 — A.M. Khanwilkar, Dinesh Maheshwari

In Brief

In a motor vehicle accident case, the deceased, a government employee earning Rs. 23,123 per month, died leaving two adult married sons who were partially dependent on her income. The insurer argued the sons were ineligible for compensation due to their age and employment status. The Supreme Court held that legal representatives of a deceased person can claim compensation regardless of financial dependency; the right to apply is distinct from entitlement. Compensation must be calculated using gross salary (less tax) with one-third deduction for personal living expenses, not 50%. Financial assistance under government compassionate rules should be deducted only for the salary portion, not pension. The appeal was partly allowed with compensation recalculated at Rs. 31,96,230, payable subject to beneficiaries filing affidavits confirming they would not claim government assistance.

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Motor Vehicles Act Tort Law Accident Compensation Loss of Dependency Government Employee Benefits Life Insurance Civil Procedure

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