Wednesday, 27 May 2026

Supreme Court: Motor Accident Claim: No Deduction Of Employer-Provided Group Insurance Benefits From Compensation

  In view of the foregoing discussion, and in light of the settled principles laid down by this Court in Helen C. Rebello(Supra), United India Insurance Co. Ltd. (supra) and Sebastiani Lakra (Supra), It is clear that amounts received by the dependants of the deceased under employer-provided group insurance or other contractual or social security benefits cannot be treated as "pecuniary advantages" liable to be deducted from compensation awarded under the Motor Vehicles Act, 1988. Such benefits arise out of an independent contractual relationship and lack the requisite nexus with the statutory compensation payable for death in a motor vehicle accident. The principle of balancing loss and gain cannot therefore be invoked to diminish the statutory entitlement of the claimants to just compensation. {Para 16}

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 5490-5491 of 2025 and 5492-5493 of 2025

Decided On: 16.03.2026

The Managing Director, KSRTC Vs. P. Chandramouli and Ors.

Hon'ble Judges/Coram:

Pankaj Mithal and P.B. Varale, JJ.

Author: P.B. Varale, J.

 Citation: 2026 INSC 241, MANU/SC/0233/2026.

Read full judgment here: Click here.

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