In Brief
The deceased, a 52-year-old government employee with a salary of Rs. 58,565 per month, died in a motor vehicle accident. The MACT awarded Rs. 40.9 lakh compensation to the family, but the High Court reduced it to Rs. 36 lakh without reasons. The insurance company sought deduction of Rs. 50,082 monthly payments the family received under the Employees Family Benefit Scheme. The Supreme Court held that such EFB payments cannot be deducted as they lack nexus with the accident and are not statutory benefits within the deduction principle. The Court also denied the family's claim for 15% future prospects, finding the EFB payments offset such loss. The Court recalculated compensation at Rs. 50 lakh with 9% interest, allowing the insurance company to adjust amounts already paid.
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