Vimal Kanwar & Ors. Vs. Kishore Dan & Ors., Civil Appeal No. 5513 of 2012 (arising out of SLP(C)No.6367 of 2012)
(Decided on May 3, 2013)
The issue was “whether Provident
Fund, Pension and Insurance receivable by claimants come within the periphery
of the Motor Vehicles Act to be termed as “Pecuniary Advantage” liable for
deduction.”
The Hon’ble Court quoted “Helen
C. Rebello (Mrs) and others vs. Maharashtra State Road Transport
Corporation & Anr.” (1999) 1 SCC 90, in which the court held
that the Provident Fund, Pension, Insurance and similarly any cash, bank
balance, shares, fixed deposits, etc. are all a “pecuniary advantage”
receivable by the heirs on account of one’s death but all these have no
correlation with the amount receivable under a statute occasioned only on
account of accidental death. Such an amount will not come within the periphery
of Motor Vehicles Act to be termed as “pecuniary advantage” liable for deduction. The
following was the observation and finding of this Court:
“35. Broadly, we may examine
the receipt of the provident fund which is deferred payment out of the contribution
made by an employee during the tenure of his service. Such employee or his heirs
are entitled to receive this amount irrespective of the accidental death.
This amount is secured, is certain to be received, while the amount under the Motor
Vehicles Act is uncertain and is receivable only on the happening of the event,
viz, accident, which may not take place at all. Similarly, family
pension is also earned by an employee for the benefit of his family in the form
of his contribution in the service in terms of the service
conditions receivable by the heirs after his death. The heirs receive family
pension even otherwise than the accidental death. No correlation between
the two. Similarly, life insurance policy is received either by the insured or the heirs of the
insured on account of the contract with the insurer, for which the insured contributes
in the form of premium. It is receivable even by the insured if
he lives till maturity after paying all the premiums, In the case of death, the
insurer indemnifies to pay the sum to the heirs, again in the terms of the
contract for the premium paid. Again, this amount is receivable by the
claimant not on account of any accidental death but otherwise on the insured's
death. Death is only a step or contingency in terms of the contract, to receive
the amount. Similarly any cash, bank balance, shares, fixed deposits, etc.
though are all a pecuniary advantage receivable by the heirs on account of one’s
death but all these have no correlation with the amount receivable under a
statute occasioned only on account of accidental death. How could such an
amount comes within the periphery of the Motor Vehicles Act to be termed as “pecuniary
advantage” liable for deduction. When we seek the principle of loss and gain, it has to be
on a similar and same plane having nexus, inter se, between them and not to
which there is no semblance of any correlation. The insured (deceased)
contributes his own money for which he receives the amount which has no
correlation to the compensation to be computed as against the tortfeasor for
his negligence on account of the accident. As aforesaid, the amount receivable
as compensation under the Act is on
account of injury or death without making any contribution towards it, then how
can fruits of an amount received through contributions of the insured be
deducted out of the amount receivable under the negligence on account of he
accident. As aforesaid, the amount receivable as compensation under the Act is
on account of the injury or death without making any contribution towards it,
then how can the fruits of an amount received through contributions of the
insured be deducted out of the amount receivable under the Motor Vehicles Act.
The amount under this Act he receives without any contribution. As we have
said, the compensation payable under the Motor Vehicles Act is statutory while
the amount receivable under the life insurance policy is contractual”
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