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Supreme Court of India 2021-12-11 allowed

Shantilata Sethy and Another vs Divisional Manager, The New India Assurance Company Limited and Anr

Bench: 2 — D.Y. Chandrachud

In Brief

A farmer and his wife appealed after the High Court reduced their workmen's compensation claim following their son's death in a truck accident in 2004. Their son, a 24-year-old helper earning Rs 2,400 monthly plus Rs 25 daily food expenses, died when the truck struck him. The Commissioner had awarded Rs 2,64,895 based on admitted wages, but the High Court reduced it to Rs 1,98,807, claiming no material proved the salary. The Supreme Court allowed the appeal, holding that the employer's admission of salary cannot be ignored, special expenses qualify as 'wages', and interest runs from the accident date. The Court awarded Rs 2,62,164 with 12% interest and Rs 1 lakh costs, emphasizing that insurers should not harass poor families over trivial compensation sums.

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Workmen's Compensation Labour Law Insurance Motor Vehicle Accident Wages

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