Case Note & Summary
The Supreme Court addressed appeals filed by Reliance General Insurance Company Limited challenging High Court orders regarding deduction of compassionate assistance from motor accident compensation -- The case involved a fatal motor accident where the deceased government employee's dependents received compensation under both the Motor Vehicles Act, 1988 and the Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006 -- The High Court initially ordered deduction of amounts received under the 2006 Rules but later reversed this position in a Clarification Order -- The Supreme Court held that only benefits under the 2006 Rules that directly replace lost income (pay and allowances) should be deducted from MVA compensation to prevent double recovery -- Other benefits such as pension and life insurance should not be deducted -- The Court restored the High Court's Main Order with modifications and set aside the Clarification Order
Headnote
The Supreme Court examined whether amounts received under the Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006 should be deducted from compensation awarded under the Motor Vehicles Act, 1988 -- The Court held that only benefits that directly replace lost income, specifically pay and allowances, should be deducted to prevent double recovery -- Other benefits under the 2006 Rules such as pension, life insurance, and unrelated allowances should not be deducted -- The Court relied on the principle established in Reliance General Insurance v. Shashi Sharma (2016) 9 SCC 627 -- The High Court's Clarification Order was set aside and the Main Order was restored with modifications -- The matter involved a fatal motor accident where the deceased was a government employee -- The claimants had received compensation under both the Motor Vehicles Act, 1988 and the 2006 Rules
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Issue of Consideration: Whether the amount received under the Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006 should be deducted from the compensation awarded under the Motor Vehicles Act, 1988
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Final Decision
The Supreme Court allowed the appeals in part -- Set aside the High Court's Clarification Order dated 17th January 2023 -- Restored the High Court's Main Order dated 18th September 2019 with modifications -- Held that only benefits under 2006 Rules that directly replace lost income (pay and allowances) should be deducted -- Other benefits under 2006 Rules should not be deducted
