The Rajasthan High Court has enhanced the compensation awarded to the family of a motorcyclist killed in a road accident from Rs 6,15,500 to Rs 13,18,650, holding that allowances forming part of the employment package cannot be excluded from the deceased’s income merely because the salary is bifurcated under different heads.
Thank you for reading this post, don't forget to subscribe!
Jaipur: The Rajasthan High Court has allowed an appeal by the legal representatives of a motorcyclist who died after being hit by an auto-rickshaw, raising the compensation awarded by the Motor Accident Claims Tribunal and holding that his telephone and petrol allowances formed part of his income [Babita & Anr. v. Shankar Singh & Ors.].
A Single Judge Bench of Justice Sanjeet Purohit passed the judgment.
Background
The deceased was a motorcycle rider who was struck by an auto-rickshaw on December 20, 2005, near Rotary Circle, and died of his injuries nine days later. His legal representatives claimed Rs 37,68,500. By its award of January 29, 2007, the Tribunal granted Rs 6,15,500, including Rs 5,76,000 for loss of dependency. The deceased worked as a supervisor at an art emporium and earned a basic salary of Rs 4,800 a month along with Rs 2,000 a month in telephone and petrol allowances. The Tribunal computed compensation on the basic salary alone and left out the allowances.
Allowances form part of income
The High Court held that the monthly income should have been assessed at Rs 6,800 and not Rs 4,800. It observed:
“Benefits received by an employee in monetary terms, whether by way of salary, allowances or other emoluments having a nexus with employment, ordinarily form part of the income available to him.”
Relying on the Supreme Court’s decision in Triveni Kodkany v. Air India Ltd., the Court held that “allowances forming part of the employment package cannot be excluded merely because the salary is bifurcated under different heads.” It also referred to National Insurance Co. Ltd. v. Indira Srivastava for the proposition that income has different connotations for different purposes and that other perks beneficial to the family must be considered, not merely take-home salary.
The enhanced award
The Court enhanced the award by Rs 7,03,150 to a total of Rs 13,18,650, made up of Rs 10,71,000 for loss of income, Rs 1,59,720 for consortium, Rs 39,930 for loss of estate and funeral expenses, Rs 8,000 for vehicle damage and Rs 40,000 for hospitalisation. The enhanced compensation carries interest at 9 per cent per annum from the date of filing of the claim, as against the 6 per cent allowed by the Tribunal, and amounts already deposited are to be adjusted against it.
Why The Rajasthan High Court Judgment Matters
The ruling reinforces that a Tribunal cannot confine the income of a deceased employee to the basic pay shown in a salary slip. Regular allowances that come with the job are part of what the family has lost, and claimants should place proof of them on record.
Case Title: Babita & Anr. v. Shankar Singh & Ors. [S.B. Civil Miscellaneous Appeal No. 514/2008]
Citation: 2026 LiveLaw (Raj) 416
Bench: Justice Sanjeet Purohit, Rajasthan High Court
Date of Judgment: September 17, 2026
For the Appellants: Pravin Vyas
For the Respondents: Anil Kaushik