Managing Director Vs P. Chandramouli & Ors. (Supreme Court of India)
The present appeals before the Supreme Court arose from two separate motor accident compensation cases decided by the Karnataka High Court, where the core issue in both matters was whether amounts received by claimants under employer-provided group insurance schemes should be deducted from compensation awarded under the Motor Vehicles Act, 1988.
In the first case, the deceased, aged 34 years and employed as a team manager, died in a road accident involving a bus driven in a rash and negligent manner. The Tribunal awarded compensation of ₹69.07 lakh but deducted ₹35.48 lakh received under a group insurance scheme, resulting in a reduced award. On appeal, the High Court set aside this deduction and granted the full compensation amount without deducting insurance proceeds.
In the second case, the deceased, aged 47 years and employed as an assistant manager, died in a similar accident involving negligent driving of a bus. The Tribunal awarded compensation but deducted ₹10 lakh received under a group insurance scheme. The High Court again removed the deduction and reassessed the compensation without reducing the insurance amount.
The appellants challenged these High Court decisions before the Supreme Court, contending that claimants had already received monetary benefits from employer-provided insurance and should not be allowed to recover compensation twice for the same incident. It was also argued that there was contributory negligence on the part of the deceased in both cases and that compensation should be reduced accordingly.
