In a significant ruling on road accident compensation, the Supreme Court of India has enhanced the compensation for the family of a man who died in a tragic car-lorry collision on the Bijapur–Horti highway. The Court observed that the Karnataka High Court had reduced the deceased’s assessed income without any reasoning, thereby unjustly affecting the dependants’ rightful claim.
Background
The case arose from a 2010 accident where four friends from Bijapur, travelling to Shirdi, lost their lives after a goods lorry hit their car head-on. Following this, four separate claim petitions were filed. While the Motor Accident Claims Tribunal had fixed the deceased’s monthly income at ₹6,000, the High Court inexplicably lowered it to ₹5,500, even though the Insurance Company’s liability was otherwise undisputed.
The family, led by Smt. Manjula, argued that the deceased was not an ordinary wage earner but someone with multiple professional engagements. He held a diploma in pharmacy, had once run a medical shop, was a partner in a pharmaceutical distributorship, and even served as a director in a cooperative bank.
Court’s Observations
Justice K. Vinod Chandran, delivering the judgment with Justice N.V. Anjaria concurring, took a sharp view of the High Court’s approach. “There was no material basis for reducing the income from ₹6,000 to ₹5,500. In fact, given his qualifications and business involvement, it is more realistic to place his income at ₹12,000 per month,” the bench observed.
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The Court drew a comparison with its earlier precedent in Ramachandrappa v. Royal Sundaram Insurance (2011), where even a daily-wage worker in 2004 was assumed to earn ₹4,500 per month. With reasonable increments, a worker in 2010 could be assumed to earn around ₹7,500. “Here was a man better qualified and engaged in professional activities,” the Court reasoned, concluding that the Tribunal’s earlier approach was closer to the truth.
Decision
Applying the standard formula with a multiplier of 14 and future prospects at 25%, the Court recalculated the compensation. It awarded:
- ₹18,90,000 towards loss of income,
- ₹15,000 each for funeral expenses and loss of estate,
- and ₹1,60,000 towards loss of consortium for the wife, daughter, and parents.
The total award now stands at ₹20.8 lakh, subject to deduction of amounts already paid, along with 6% interest from the date of application.
“The award shall be satisfied within three months,” the Court directed, finally allowing the appeal and bringing long-awaited relief to the bereaved family.
Case: Smt. Manjula & Ors. vs The Branch Manager, Oriental Insurance Co. Ltd., Bijapur & Anr.
Appeal No.: Civil Appeal No. 11425 of 2025 (@ SLP (C) No. 1733 of 2021)
Date of Judgment: 9 September 2025
