In Brief
The deceased, a post office employee and LIC insurance agent earning L 3.5–5 lakh annually from insurance commissions, was killed in a motor accident. The Tribunal awarded L 12.64 lakh compensation, computing insurance income loss at only L 56,528 despite documentary proof of higher earnings. The High Court upheld this, reasoning legal heirs would receive commission on existing policies, so no loss occurred. The Supreme Court held such reasoning erroneous: a deceased agent's recurring income is genuine loss of earnings, not eliminated by post-death contractual payments to heirs. The Court enhanced compensation to L 25 lakh lump sum, emphasizing that proved income must be properly accounted for in compensation calculations.
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