The Supreme Court has ruled that all emoluments and benefits must be counted for loss of income in motor accident claims, regardless of whether they are taxable or not.
A Division bench of Justices P.S. Narasimha and Manoj Misra made this decision, enhancing compensation to Rs 74 lakh for the death of a 27-year-old engineer.
Allowances cannot be excluded
The court's decision came after an appeal was filed against the Patna High Court's judgment, which had reduced the compensation awarded by the Motor Accident Claims Tribunal from Rs 88,20,454 to Rs 38,15,499.
The Supreme Court's ruling restores the higher compensation awarded by the Tribunal.
Author's summary: Court rules all emoluments count.