Compensation received from Govt for a deceased employee should be deducted from total compensation: SC

The Supreme Court of India clarified that the compensation received from the Government by the dependents of a deceased employee in a motor vehicle accident should be deducted from the total compensation payable to such dependents by the tortfeasor or insurance carrier.

Adjudicating a matter where the dependents did receive compensation under Haryana Compassionate Assistance to the Defendants of Deceased Governments Employees Rules, 2006 (“Rules 2006”), a Large Bench of the Court said that the Claims Tribunal should not remain oblivious to the fact that the claim towards loss of pay and wages of the deceased has already been or will be compensated by the employer in the form of ex-gratia financial assistance on compassionate grounds under Rules 2006.

“The Claims Tribunal has to adjudicate the claim and determine the amount of compensation which appears to it to be just. The amount receivable by the dependents / claimants towards the head of pay and allowances in the form of ex-gratia financial assistance, therefore, cannot be paid for the second time to the claimants”, the Court opined.

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