Saturday, 12 April 2025

Motor Vehicles Act, 1988 — Compensation — Deductibility — Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006

 NEW INDIA ASSURANCE CO. LTD.

Vs.

SMT. SUNITA SHARMA AND OTHERS

( Before : Sudhanshu Dhulia and K. Vinod Chandran, JJ. )

Civil Appeal No........of 2025 [@Special Leave Petition (Civil) No.9515 of 2020]

Decided on : 08-04-2025

Financial assistance equivalent to 'pay/allowances' under Haryana Compassionate Assistance Rules must be deducted from MV Act compensation for loss of income to prevent double recovery.

A. Motor Vehicles Act, 1988 — Compensation — Deductibility — Haryana Compassionate Assistance to the Dependents of Deceased Government Employees Rules, 2006 — Financial assistance received or receivable by dependents of a deceased government employee under the Haryana Rules of 2006, specifically under the head equivalent to ‘pay and other allowances’ last drawn by the deceased, must be deducted/excluded while computing compensation for loss of income/dependency under the Motor Vehicles Act, 1988 — This is to avoid double payment towards the same component of loss.