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Supreme Court of India 2025-03-17 partly_allowed

SHIVALEELA AND OTHERS vs THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE

Bench: 2 — Sudhanshu Dhulia, Ahsanuddin Amanullah

In Brief

A 32-year-old farmer and entrepreneur died in a motorcycle accident caused by rash driving. His family claimed compensation of Rs.77 lakhs, but the trial court awarded only Rs.25.49 lakhs and the High Court reduced it to Rs.20.61 lakhs, assessing the deceased's monthly income at just Rs.8,000. The Supreme Court found both lower courts erred in ignoring substantial evidence: crop sales exceeding Rs.5 lakhs in three months, a bank loan of Rs.4.2 lakhs for agriculture, and documented milk income of Rs.6,000 monthly. The Court reasonably assessed his monthly income at Rs.15,000 and increased total compensation to Rs.35.66 lakhs, reaffirming that motor accident compensation must forward-lookingly provide stability to dependants based on actual evidence of earnings.

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Motor Vehicles Act Tort and Negligence Compensation Motor Accident Claims Income Assessment

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