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Cross-Border Tragedy of USA self-employed driver – Compensation & Future Prospects

August 16, 2025 legaldeli

The deceased husband, aged 31 years, of the appellant no.1 and father of other claimants died in an accident on 31.8.2007 at Karnal while travelling in a car dashed by the truck. The deceased was USA national and working as driver in USA in West End Express.

The Tribunal granted compensation of Rs.7,80,000/- with interest taking income at Rs.5,000/- per month. The Tribunal rejected income tax record and salary certificate of $2150 per week on the ground that it did not bear the stamp of Consulate General of India.

The High Court disagreed with rejection of the said documents and found that the minimum wages earned by employee in US during 8 hours was $7.25 per hour, which would come to $170 per month (equivalent to Rs.78,300/- per month). The High Court enhanced the compensation to Rs.1,17,20,200/-.

However, the High Court did not give future prospects component.

HELD that the appellants – claimants are entitled to the additional compensation for future prospects component. A person who is self-employed is bound to garner his resources and raise his charges / fees so that he can live with same facilities. Therefore, the legal heirs of a deceased self-employed person are entitled to the compensation on account of future prospects. The total compensation was enhanced to Rs.1,60,15,280/-.

HELD that there will be no gainsaying that assessing the “future prospects” of a person self employed in a foreign country like United States, compared to a person in this country, would becme difficult for the simple reason that the socio-economic-political conditions in any foreign country would be different. Even as this Court is not oblivious to the said aspect, in order to determine the just compensation to a person who died in an accident in India, the dictum of law in Pranay Sethi case shall have to be followed and applied, specially when no material evidence is offered to determine the future prospects in the foreign country.

Judgment dated 8.8.2025 of the Supreme Court of India in Civil Appeal No.820 of 2019 of Kulwinder Kaur & others Vs. Parshant Sharma and another

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