Pension payable to widow of the deceased is not liable to be deducted from the amount of compensation payable -- Similarly, any ex gratia amount paid by the employer to widow of the deceased is not deductible -- Deceased was employed in Delhi Development Authority – D.D.A. has not enacted any rules similar to Haryana 2006 Rules extending compassionate financial assistance to the dependents of its deceased employees by payment of sum equal to pay and allowances last drawn by the deceased employee – Widow getting amount of Rs.13,660/- per month as family pension from the department -- Tribunal wrongly deducted amount of Rs.26,67,168/- out of the compensation amount of Rs.35,56,069/- payable to the appellants/claimants.

(P&H HC) Decided on: 17.09.2020

Insurance claim – Pensionary benefits -- Other pecuniary benefits outcome or result of death – Law is well settled that deductions cannot be allowed from the amount of compensation either on account of insurance, or on account of pensionary benefits or gratuity or grant of employment to a kin of the deceased -- Claimants/dependents are entitled to ‘just compensation’ under the Motor Vehicles Act as a result of the death of the deceased in a motor vehicle accident -- Advantage which accrues to the estate of the deceased or to his dependents as a result of some contract or act which the deceased performed in his life time cannot be said to be the outcome or result of the death of the deceased even though these amounts may go into the hands of the dependents only after his death.

(SC) Decided on: 12.10.2018

Life Insurance premium -- Deceased paid premium on life insurance and this amount would have accrued to the estate of the deceased either on maturity of the policy or on his death, whatever be the manner of his death -- Similar would be the position in case of other investments like bank deposits, share, debentures etc. -- Tort-feasor cannot take advantage of the foresight and wise financial investments made by the deceased.

(SC) Decided on: 12.10.2018

Pension and Gratuity -- Amounts of pension and gratuity are paid on account of the service rendered by the deceased to his employer -- Pension and gratuity are the property of the deceased -- They are more in the nature of deferred wages -- Said amount cannot be deducted.

(SC) Decided on: 12.10.2018

Financial assistance to family of deceased employee – Harmonious approach for determining a just compensation payable under the Act of 1988, is to exclude the amount received or receivable by the dependents of the deceased Government employee under the Rules of 2006 towards the head financial assistance equivalent to “pay and other allowances” that was last drawn by the deceased Government employee in the normal course -- This is not to say that the amount or payment receivable by the dependents of the deceased Government employee under Rule 5 (1) of the Rules, is the total entitlement under the head of “loss of income” -- So far as the claim towards loss of future escalation of income and other benefits, if the deceased Government employee had survived the accident can still be pursued by them in their claim under the Act of 1988 -- Similarly, other benefits extended to the dependents of the deceased Government employee in terms of sub-rule (2) to sub-rule (5) of Rule 5 including family pension, Life Insurance, Provident Fund etc., that must remain unaffected and cannot be allowed to be deducted, which, any way would be paid to the dependents of the deceased Government employee.

(SC) Decided on: 23.09.2016