Madhya Pradesh road death case: Supreme Court restores Rs 60 lakh compensation, quashes high court cut

BHOPAL: In a significant ruling on compensation in motor accident cases, the Supreme Court has awarded Rs 60 lakh to the widow and minor daughter of a road accident victim, setting aside a Madhya Pradesh High Court order that had reduced the compensation from Rs 52 lakh to Rs 9 lakh.

A Division Bench comprising Justices Sanjay Karol and A G Masih held that the High Court erred in disregarding credible evidence regarding the deceased’s income and arbitrarily slashing the compensation.

The case pertains to a 2018 road accident in which the deceased—an operator of JCB machines and bulldozers—lost his life. Following his death, his wife and eight-year-old daughter approached the Motor Accident Claims Tribunal (MACT) in Katni, claiming he earned Rs 24,000 per month as a skilled worker and sought compensation of Rs 75 lakh.

The MACT awarded Rs 52 lakh along with interest. However, the insurance company, IFFCO Tokio General Insurance Co Ltd., challenged the award before the High Court, arguing that the income was not adequately proved. Accepting this contention, the High Court reduced the compensation to Rs 9 lakh, treating the deceased as an unskilled worker and citing lack of sufficient documentary proof.

Challenging the reduction, the claimants moved the Supreme Court through a special leave petition.

Appearing for the family, advocates Siddharth R Gupta and Yogesh Soni argued that the employer’s testimony and salary certificate—already on record—were sufficient to establish income, in line with settled Supreme Court precedents. They further contended that operating heavy machinery like JCBs and bulldozers qualifies as skilled work and cannot be equated with unskilled labour.

Agreeing with the submissions, the Supreme Court held that the employer’s testimony and salary certificate constituted reliable evidence and should not have been discarded. The court observed that the High Court’s approach in reducing the compensation was unjustified, particularly when the evidence had not been disputed.

Restoring and enhancing the compensation to Rs 60 lakh, the apex court directed the insurance company to immediately release the amount to the claimants and file a compliance report.