Accident Compensation – Allowances with pay package are income

On 29.1.2019, the deceased who was working as Technical Lead at HCL Technologies Ltd and driving the scooter was given dash by the tanker.  He succumbed to the injuries on way to the hospital.

Claim petition for rs.3 crores was filed based on income of Rs.1,37,000/- inclusive of allowances. However, the Tribunal awarded compensation of Rs.81,89,000/- at Rs.40,000/- per month to the claimants. It was held that the deceased was on probation and that his entire salary paid could not be considered.

HELD that mere bifurcating the earnings under different heads does not alter character of the income.   What is essential to consider is the consistent salary of the deceased.   Payments made under various heads to the deceased remain part of his income. The allowances cannot be considered speculative as they were paid consistently on month to month basis.  While the allowances may be separate from the basic salary, they remain part of the composite earning of the deceased employee.  The payment of allowances is not attached with any other contingencies, to consider it as not permanent or not accrued. 

There is no reason for the Tribunal to assume that the deceased probationary period would not have been successfully completed.  If the deceased was drawing a salary of Rs.1,37,000/- during the probationary period the skills and expertise recognized by the employer should not have been disregarded.

Judgment dated 29.5.2025 of the Karnataka High Court in Misc. First Appeal No.167 of 2024 of Smt. Priti Singh and others Vs. Reliance General Insurance Co. Ltd and another