Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 07 July 2026
Case Overview
- Appellants: Phooli Devi and others (family of the deceased); Respondent: The New India Assurance Company Ltd.
- Accident involved two trucks; the deceased was the sole breadwinner, driver and owner of a truck with a National Permit.
- Original claim sought compensation based on monthly income of Rs 6,810 as determined by the Tribunal; High Court reduced personal expense deduction and enhanced loss of consortium.
- Appellants argued monthly income was Rs 25,000, supported by loan EMI deductions of Rs 14,000‑25,000 and ownership of the truck.
- Insurance company contested the higher income claim, noting inconsistency between claimed income and deductions.
- Evidence included Annexure P1 (National Permit) and Annexure P2 (account statements showing EMIs).
- Court accepted the higher income estimate of Rs 25,000 per month.
Final Outcome
- Appeal allowed; compensation recalculated as:
- Loss of income: Rs 29,25,000 (computed using Rs 25,000 × 12 × 125% × 13 × 3/4)
- Loss of consortium: Rs 1,60,000
- Loss of estate: Rs 15,000
- Funeral expenses: Rs 15,000
- Total: Rs 31,15,000
- Award to be paid with 7% interest, within two months of the order, after deducting amounts already paid.
Topics: Compensation, Insurance Claim