In a key judgment dated April 29, 2025, the Supreme Court of India ruled that an unemployed or unproven-employed husband can be considered partially dependent on the income of his deceased wife while determining compensation in motor accident claims.
The case titled Sri Malakappa & Ors. vs. IFFCO Tokio General Insurance Co. Ltd. & Anr. involved the death of a woman pillion rider in a road accident on 22 February 2015. Her husband and two children filed a claim under the Motor Vehicles Act, seeking compensation. However, the Motor Accident Claims Tribunal (MACT) excluded the husband as a dependent, reasoning that he was an able-bodied man of 40 years.
"We are of the opinion that since there was no employment specified of the husband, it cannot be assumed that he would not have been at least partially dependent on the income of the deceased," the Court stated, while allowing the husband's inclusion as a dependent.
Initially, the MACT awarded ₹18,81,966 in total compensation, including ₹13.44 lakhs for loss of dependency. The deceased was assumed to earn ₹7,000 per month as a coolie, though ₹15,000 was claimed. However, only the two children were considered dependents, leading to a one-third deduction for personal expenses.
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The insurance company challenged the decision before the High Court, arguing against the amount and negligence findings. The High Court upheld the negligence finding and marginally increased the deceased’s assumed income to ₹8,000 per month. Still, it retained the exclusion of the husband as a dependent.
a bench of Justices Sudhanshu Dhulia and K. Vinod Chandran disagreed with the MACT and High Court, stating that the absence of proven employment for the husband meant he could not be presumed fully independent.
"The family has to be comprised of four. In such circumstances, the deduction for personal expenses shall be at 1/4th," the Court emphasized.
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The bench also reinstated the addition of 40% for future prospects in line with constitutional principles from previous landmark rulings like Pranay Sethi and Somwati. The Court revised the compensation as follows:
“We do this exercise on the trite principle that what is to be awarded is ‘just compensation’ as has been held by the Constitution Bench,” the Court noted.
Final Compensation Breakdown:
- Loss of dependency: ₹16,12,800
- Loss of consortium (spouse and children): ₹1,20,000
- Medical expenses: ₹21,966
- Funeral and transport: ₹15,000
- Loss of estate: ₹15,000
- Total: ₹17,84,766
The Court clarified that separate compensation for “loss of love and affection” is not permitted when consortium compensation is already awarded. The appeal was disposed of with modified compensation, aiming to deliver justice through a balanced and fair calculation.
Case Title: SRI MALAKAPPA & ORS. VERSUS THE IFFCO TOKIO GENERAL INSURANCE COMPANY LIMITED & ANR.
Appearance:
For Petitioner(s) Mr. Chinmay Deshpande, Adv. Mr. V. N. Raghupathy, AOR
For Respondent(s) Mr. Suyash Vyas, Adv. Mr. Gopal Singh, AOR
