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2025InsuranceLatestLegalOctober 2025Supreme Court

Compensation Does not Die – SC Judgment Redefines Rights of Legal Heirs of Accident Victim

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The ruling is powerful affirmation of justice for accident victims and their families ensuring that rightful compensation claims do not perish with the death of the claimant.

The claimant who was rendered 100% disabled in the accident died during the pendency of the appeal for enhancement of the compensation.

HELD that the right to claim compensation for the accident injuries survives on the legal representatives of the injured even if the injured dies in the course of proceedings not relatable to or having any nexus with the injuries sustained.   Here the injured died in 2024, after insertion of sub-section (5) to Section 167 of the MV Act with effect from 1.4.2022.

Considering the fact that the injured was engaged as a Mistry – skilled worker for which oral evidence was adduced, we are of the opinion that Rs.9,000/- can be safely accepted as his monthly income at the time of accident which he was deprived of fully because of 100% disability.   What is awarded to an injured in a claim petition is just compensation and it cannot lead to a windfall for the injured claimant or his legal heirs.

Judgment dated 26.9.2025 of the Supreme Court in Civil Appeal No.2159 of 2024 of Dhannalal Alias Dhanraj (Dead) through L.Rs.   Vs.   Nasir Khan and others

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