Hitherto,the courts in India has been passing awards for the death of an accident victim on the basis of the "Take-Home Salary of the Deceased Person".That means the legal heirs of the deceased person can get a compensation only on the basis of the net take-home salary drawn by the deceased person at the time of his death.
But the Supreme court of India offering succour to the dependants of the road victims, while determining the compensation courts should not only consider the monthly salary but also his perks which are beneficial to his entire family.According to the bench comprising Justices S.B.Sinha and H.S.Bedi, the basis for considering the entire pay pocket is what the dependants have lost due to the death of the deceased.It is the nature of the compensation for future loss towards the family income.Interpreting the term,"just compensation"used in section 168 of the Motor Vehicles Act,it must be considered on a case to case basis in the changing societal conditions by giving weigtage to perks which were paid to the deceased employees.
The ruling is beneficial to the millions of families of road accident victims as it entails them, higher cvompensation than hitherto awarded on the basis of net take-home pay of the deceased road accident victim.