Supreme Court Enhanced Compensation to Rs. 37,80,681/- in Motor Accident Claim Case. Major Married and Earning Children Also Entitled to Compensation as Legal Representatives – Supreme Court Reiterated.


Summary of Judgement

Constitution of India, Article 136 – Civil Appeal – Motor Accident Claims – Compensation – Dependency – Major married and earning children are also legal representatives entitled to compensation, irrespective of dependency – National Insurance Company Limited v. Birender & Ors. (2020) 11 SCC 356 relied upon – Compensation recalculated considering future prospects @30% and 1/4th deduction – Multiplier of 13 applied – Enhanced to Rs. 37,80,681/- – Appeal allowed – Para 9, 10, 11.

Motor Vehicles Act, 1988, Section 166 – Claim Petition – Compensation awarded by MACT at Rs. 24,36,155/- with 7% interest – High Court modified compensation to Rs. 24,44,183/- – Supreme Court further modified to Rs. 37,80,681/- – Para 5, 7, 11.

Major married and earning children are legal representatives entitled to compensation – Para 9, 10. Compensation recalculated: Yearly income Rs. 2,80,140/-, Future prospects 30%, Deduction 1/4th, Multiplier 13 – Para 11. Enhanced compensation awarded Rs. 37,80,681/- – Para 11.

Subjects: Motor Accident, Compensation, Legal Representatives, Dependency, Future Prospects, Multiplier, Deduction, Loss of Estate, Funeral Expenses, Consortium, Appeal Allowed.

Nature of the Litigation: Appeal against the High Court’s judgment modifying the compensation awarded by MACT in a motor accident claim.

Relief Sought: Enhanced compensation for the deceased's legal representatives.

Reason for Filing the Case: Aggrieved by the exclusion of major married children from compensation and inadequate amount awarded.

Prior Decisions: MACT awarded Rs. 24,36,155/-; High Court modified to Rs. 24,44,183/-.

Issues:
a. Whether major married and earning children of the deceased can be excluded from compensation as dependents?
b. Whether future prospects and appropriate deduction were correctly applied in awarding compensation?

Submissions/Arguments:
a. Appellants argued that all legal representatives are entitled to compensation irrespective of dependency – Para 9.
b. Insurance Company contended that major children are not dependents – Para 7.

Ratio: Legal representatives, including major married and earning children, are entitled to compensation under the Motor Vehicles Act – National Insurance Co. Ltd. v. Birender relied upon – Para 9, 10.

The Judgement

Case Title: SEEMA RANI & ORS. VERSUS THE ORIENTAL INSURANCE CO. LTD. & ORS.

Citation: 2025 LawText (SC) (2) 116

Case Number: CIVIL APPEAL NO. 2323 OF 2025 (Arising out of SLP(C)No. 444 of 2025)

Date of Decision: 2025-02-11