Compassionate Employment To Dependent Of Deceased Not 'Pecuniary Advantage' For Calculating Accident Compensation: Chhattisgarh High Court

The Chhattisgarh High Court has held that compassionate appointment granted to a dependent of a deceased employee cannot be treated as a "pecuniary advantage" liable to be deducted while determining compensation under the Motor Vehicles Act, 1988. The Court observed that compassionate appointment flows from the service conditions of the deceased employee and is not a benefit arising out of the accidental death so as to reduce the statutory compensation payable to the claimants.

Justice Sanjay K. Agrawal was hearing two connected appeals arising out of a common award passed by the Motor Accident Claims Tribunal. The Insurance Company challenged the award of compensation on the ground that one of the claimants, the deceased's son, had already secured a compassionate appointment and, therefore, was not entitled to claim compensation. The claimants, on the other hand, sought enhancement of compensation, contending that the Tribunal had incorrectly assessed the deceased's monthly salary.

Rejecting the Insurance Company's contention, the Court relied upon the decision of the Supreme Court in Vimal Kanwar v. Kishore Dan [(2013) 7 SCC 476], wherein it was held that compassionate appointment cannot be regarded as a pecuniary advantage liable for deduction while computing compensation under the Motor Vehicles Act.

The Court had observed that compassionate appointment may be available whenever an employee dies in harness, irrespective of whether the death is accidental or natural, and therefore bears no correlation with the compensation payable under the Motor Vehicles Act. It held that the grant of compassionate appointment to the deceased's son did not disentitle him from claiming compensation as one of the legal representatives.

The Court further held that the Tribunal had erred in assessing the monthly income at Rs.81,500/-. The Court enhanced the compensation from Rs.82,99,639/- to Rs.87,03,503/-, with interest at the rate of 6% per annum from the date of filing of the claim petition till realization.

Accordingly, the Court dismissed the Insurance Company's appeal, partly allowed the claimants' appeal, modified the award of the Claims Tribunal, and directed the Insurance Company to deposit the enhanced compensation within three months.

Case Title: Smt. Ratna Banchor & Ors. v. Santlal Patel & Ors. [MAC No. 218 of 2020] with Bajaj Allianz General Insurance Company Ltd. v. Smt. Ratna Banchor & Ors. [MAC No. 109 of 2020].

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