Authority: High Court of Punjab & Haryana at Chandigarh

Order Date: 16.07.2026

Case Overview

  • Appellants: Roshni Devi and others (claimants)
  • Respondents: Arjun Singh (driver), tractor owner (respondent No.2), Insurance Company (respondent No.3)
  • Original award (13.05.2002, MACT, Kurukshetra) granted Rs3,00,000 compensation with 9% interest from claim filing date.
  • Accident occurred on 05.03.2001, resulting in death of Prithi (sweet‑maker, age 40) and injuries to Gian Chand.
  • Issues framed: negligence of driver, entitlement to compensation, validity of tractor insurance, licence validity.
  • Tribunal record destroyed in fire; appeal decided on facts presented in original award.
  • Appellants argued original compensation based on low income estimate, wrong multiplier (12 instead of 15), and omission of loss of estate and funeral expenses.
  • Respondent No.3 (insurance) defended original award as justified.
  • Court referenced Supreme Court precedents on "just compensation" and assessment principles.

Compensation Assessment Details

  • Deceased’s monthly income assessed at Rs4,000 (based on social status and minimum wages).
  • Future prospects added at 25%: Rs1,000, giving total monthly income Rs5,000.
  • Dependents: wife and two minor children (3 dependents).
  • Deduction for personal & living expenses (1/3): Rs1,667.
  • Monthly loss of dependency: Rs3,333 (Rs5,000 – Rs1,667).
  • Annual loss of dependency: Rs39,996 (Rs3,333 × 12).
  • Multiplier applied: 15 (deceased aged 40), yielding loss of dependency Rs5,99,940 (Rs39,996 × 15).
  • Conventional heads for wife: Rs70,000 (Rs40,000 loss of consortium + Rs15,000 loss of estate + Rs15,000 funeral expenses).
  • Conventional heads for each child: Rs40,000 (loss of parental consortium), total Rs80,000 for two children.
  • Total compensation calculated: Rs7,49,940, rounded to Rs7,50,000.
  • Interest: 9% per annum from filing date 05.05.2001 till realization.

Final Outcome

  • Appeal partially allowed; claimants entitled to Rs7,50,000 compensation (enhanced by Rs4,50,000 over original award) plus interest.
  • Payment to be made jointly and severally by respondents No.1 (Arjun Singh), No.2 (tractor owner), and No.3 (Insurance Company).
  • Each child (claimants No.2 and No.3) to receive Rs1,00,000 plus proportionate interest; remaining balance to wife (claimant No.1) with proportionate interest.
  • Registry directed to email authenticated copy of the award to the Insurance Company as per Supreme Court judgment in Bajaj Allianz General Insurance Co. vs Union of India (Writ Petition No.534 of 2020, decided 16.03.2021) and to comply with Clause (F) of that judgment.
  • All pending miscellaneous applications, if any, are disposed of.

Topics: Motor Accident Compensation, Judicial Award