The Apex court wants the killed victims’ family to be compensated for not just the loss of his monthly income, but also other related benefits like superannuation benefits and benefits related to education of children.

Old methods gone

The ruling is likely to bring cheers to millions of families of road accident victims as it entitles them to higher compensation, since courts till date mostly awarded compensation on the basis of the net take-home salary of a deceased.

“The basis for considering the entire pay package is what the dependents have lost due to death of the deceased. It is the nature of compensation for future loss towards the family income,” a Bench of Justices S B Sinha and H S Bedi said.

Interpreting the term “just compensation” used in Section 168 of the Central Motor Vehicle Tax, the Apex court said it must be considered on a case to case basis in the changing societal conditions by giving weightage to perks which are paid to employees.

The Apex court’s ruling came in the case of Indira Srivastava, who was awarded a compensation of Rs 20 lakh by a Motor Accidents Claims Tribunal after her husband employed with a private  company died after being hit by a jeep.

The Apex court said in view of the changing societal conditions that courts must not only examine the pay packet, but also other perks, which are beneficial to one’s family.

“Loss caused to the family on a death of a near and dear one can hardly be compensated on monetary terms,” the Bench observed.