Punjab & Haryana HC Restores Full Compensation To Army Officer’s Family In Accident Case

Nearly a decade after a road accident claimed the life of a 25-year-old Army officer, the Punjab and Haryana High Court ruled that courts cannot deduct compensation received under a group insurance scheme from compensation awarded under the Motor Vehicles Act.

The court also restored the family’s compensation from ₹38.43 lakh to ₹98.43 lakh.

The ruling came after the Motor Accident Claims Tribunal (MACT) in Kurukshetra deducted ₹60 lakh received by the deceased officer’s family under the Army’s group insurance scheme from the total compensation assessed at ₹98.43 lakh.

The appeal, filed in 2018 seeking enhancement of compensation, came before Justice Pankaj Jain, who disposed of the eight-year-old matter in a single hearing.

The court distinguished benefits received under a group insurance scheme from financial assistance provided by the State under service rules.

In the judgment, Justice Jain observed, “The group insurance scheme cannot be related to financial assistance given by the State under Service Rules, wherein the insurer pays the compensation after receiving the premium.”

Holding that the tribunal’s deduction was unsustainable, Justice Jain ruled, “This Court finds that the tribunal erred in deducting the amount of Rs 60 lakh from the compensation awarded.”

The High Court restored the deducted amount and also noted that the tribunal had failed to award compensation for loss of consortium and loss of estate.

“Nothing has been paid on account of loss of consortium and loss of estate; the claimant is held entitled for the amount of Rs 48,400 for loss of consortium and Rs 18,000 for loss of estate,” Justice Jain observed while passing the order.

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