National Insurance Co. Ltd. Vs Neeru Devi & Ors. (Supreme Court of India)
SC curbs inflated income assumptions in motor accident claims: Compensation scaled down to realistic level
The Supreme Court partly allowed the insurer’s appeal and reduced the compensation awarded in a motor accident claim, holding that income cannot be assessed on conjectures and inflated assumptions. The Court noted that the Tribunal and High Court had accepted a monthly income of ₹95,000 without any documentary support such as income-tax returns, despite the income being well above the taxable limit. Mere reliance on loan EMIs paid for two trucks was held insufficient to presume double the EMI as income. Distinguishing Gurpreet Kaur, the Court observed that in the present case the deceased was a transport contractor owning two trucks and the business could continue even after his death, meaning the accident would not have completely stopped income generation. Reiterating the principle in Pranay Sethi that compensation should be “just” and neither a windfall nor a pittance, the Court held that ₹50 lakh already deposited would suffice towards loss of dependency, with interest @ 9% per annum. In addition, the claimants were held entitled to compensation for loss of consortium (including filial consortium to children), loss of estate and funeral expenses, aggregating to an additional ₹1.60 lakh, all carrying interest @ 9% from the date of claim petition. The balance amount was directed to be paid within one month.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Leave granted.
