As held by the House of Lords in Parry v. Cleaver MANU/UKHL/0008/1969 : 1970 AC 1 the insurance amount is the fruit of premium paid in the past, pension is the fruit of services already rendered and the wrongdoer should not be given benefit of the same by deducting it from the damages assessed.
{Para 15}
16. Deduction can be ordered only where the tortfeasor satisfies the court that the amount has accrued to the claimants only on account of death of the deceased in a motor vehicle accident.
50. In National Insurance Co. Ltd. v. Mannat Johal, MANU/SC/0589/2019 : 2019:INSC:561 : (2019) 15 SCC 260, the Supreme Court was considering whether the ex-gratia payment received from the employer of the deceased, being one year's gross salary, which was not shown to be under any Rules or Services and overall continuous assistance, can be set off against the compensation payable under the Act. The Court held that the same cannot be deducted.
51. From the above, it is apparent that compensation paid to the claimant is for the wrongful death of her son in the accident. The tortfeasor, who is primarily liable to pay such compensation, cannot claim a benefit in reduction of compensation payable by such tortfeasor, only because the deceased had, himself or through his employer, made an arrangement for providing a security to his legal heirs in case of any unforeseen happening, like an accident. Merely because the deceased himself did not pay the premium, in my opinion, is also not a relevant circumstance. Though such a premium is paid by the employer of the deceased, it is against the service that was being discharged by the deceased in his employment. How the employer frames the pay package to its employees is a matter between the employer and the employee, however, one thing is certain that even if the premium is paid by the employer, it is paid because of the relationship between the employer and the employee and for reason of such employment, it is not for the benefit of the tortfeasor.
IN THE HIGH COURT OF DELHI
MAC. APP. 160/2019 and CM Appl. 4451/2019
Decided On: 09.01.2024
Iffco Tokio General Insurance Co. Ltd. Vs. Kanchan and Ors.
Hon'ble Judges/Coram:
Navin Chawla, J.
Citation: MANU/DE/0154/2024.
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