Authority: High Court of Uttarakhand at Nainital, Hon'ble Justice Subhash Upadhyay

Order Date: 29.09.2026

Case Overview

  • Parties: Appellants – Smt. Sharmila Sajwan (widow), her two children and parents of the deceased; Respondent – The New India Insurance Company Ltd.
  • Original proceeding: Appeal against Order No.530 of 2012 passed by the Motor Accident Claim Tribunal (MACT)/District Judge, Dehradun in MACP Case No.47 of 2011, dated 13.07.2012.
  • Accident facts: On 08.02.2011 at ~7 a.m., constable Diwan Singh (aged 28) riding Motorcycle No.UA 07M 5316 was struck by Truck No.PB 10CZ 6730 near Praveen Motors, Dehradun. He later died at Lehman Hospital, Vikasnagar.
  • Salary of the deceased: Monthly ₹14,671 (including allowances). Yearly gross ₹1,76,052.
  • Dependents: Five (wife, two children, parents).
  • MACT award: ₹18,10,000 with interest conditions; Tribunal applied multiplier 18 and 1/3rd personal expense deduction, and did not award future prospects, loss of estate, consortium, or funeral expenses beyond a nominal ₹10,000.
  • Grounds of appeal: Incorrect salary rounding, wrong multiplier, improper deduction percentage, omission of future prospects (50%), omission of loss of consortium (₹40,000) and funeral expenses (₹15,000), and erroneous interest computation.
  • Respondent contentions: Salary should exclude allowances, income‑tax deductions applicable, compensation paid within two months so no interest, and future prospects limited to 40% for salaried employee.
  • Court’s legal references: Sarla Verma (2009) for multiplier and deduction rules, Manorama Sinha (2025) for inclusion of allowances, Pranay Sethi (2017) for future prospects and conventional heads, Vimal Kanwar (2013) and National Insurance Co. Ltd. (2017) on compassionate appointment, and several Supreme Court judgments on consortium (spousal, parental, filial).

Final Outcome

  • The Court held the multiplier should be 17 (not 18) and deductions for personal/living expenses should be 1/4th (not 1/3rd).
  • Monthly income confirmed at ₹14,671; yearly income after 10% tax on ₹16,052 = ₹1,605 tax, net yearly ₹1,74,447.
  • Future prospects: 50% of net yearly income = ₹87,223.50; total with future prospects = ₹2,61,670.50.
  • Compensation calculation:

1. Multiply ₹2,61,670.50 by 17 = ₹44,48,398.50.

2. Deduct 1/4th for personal expenses: ₹11,12,099.62.

3. Net after deduction = ₹33,36,298.88 (rounded to ₹33,36,299).

4. Loss of consortium: ₹40,000 × 5 dependents = ₹2,00,000.

5. Funeral expenses: ₹15,000.

6. Loss of estate: ₹15,000.

7. Total compensation = ₹33,36,299 + ₹2,00,000 + ₹15,000 + ₹15,000 = ₹35,66,299.

  • Interest: 7% per annum from the date of filing of the claim petition, payable on the total amount, after deducting any amount already paid within two months of the order.
  • Distribution of the awarded compensation:
  • Wife (appellant No.1) – 50% of the amount with interest.
  • Children (appellants Nos.2 & 3) – 25% of the amount with interest (each child gets half of this share).
  • Parents (appellants Nos.4 & 5) – remaining 25% with interest.
  • Liability: The New India Assurance Company Ltd., as the insurer of the offending vehicle, is liable to pay the above compensation and interest.
  • The Court affirmed the MACT’s findings on negligence, driver’s valid licence, vehicle fitness, and route permit, which have attained finality.
  • All pending applications, if any, are disposed of.

Topics: Compensation, Motor Accident Claim