MOTOR ACCIDENT CLAIM: HRA, PF CONTRIBUTION SHOULD BE INCLUDED WHILE COMPUTING LOSS OF DEPENDENCY, SAYS SUPREME COURT

The Supreme Court in the case Meenakshi Versus The Oriental Insurance Co Ltd observed that the emoluments and benefits such as house rent allowance, flexible benefit plan, contribution to provident fund, PF etc. which is accrued to the deceased ought to be included while computing the loss of dependency in order to determine the compensation.

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The bench comprising of Justice Hima Kohli and Justice Sandeep Mehta was hearing the present matter.

The bench in the case set aside the order of the High Court and has stated that the High Court erred in not including the components of house rent allowance, flexible benefit plan, and contribution to provident fund, PF to the basic salary of the deceased while applying the principle of rise in income by future prospects.

The court stated that, the High Court has erred in not including the components of house rent allowance, flexible benefit plan and Company contribution to provident fund to the basic salary of the deceased while applying the principle of rise in income by future prospects.