Court Revalues Skilled Labour, Raises Compensation to ₹1.31 Crore in Fatal Accident Case

The Bombay High Court has significantly increased compensation in a motor accident claim, holding that tribunals must adopt a realistic approach while determining the income of skilled professionals. In Dr. Dhanashri Rajesh Deshmukh and ors v. Saroj Kumar Behera and anr, Justice Jitendra Jain allowed an appeal challenging a 2014 award that had fixed compensation at ₹10 lakh based on a notional monthly income of ₹8,000.

The deceased Rajesh Deshmukh aged 41, a maritime engineer with over two decades of experience, lost his life in June 2009 following a collision between a jeep and a stationary truck. The Court noted that extensive documentary and oral evidence regarding his qualifications and prior earnings had been placed on record but was inadequately appreciated by the Tribunal.

Re-evaluating the evidence, the Court emphasised that maritime professionals typically earn significantly higher wages due to offshore conditions and specialised expertise, even when engaged on a contractual basis. It found the Tribunal’s reasoning inconsistent, particularly in disregarding employment evidence while simultaneously deducting employer-paid compensation.

Taking a balanced view of fluctuating employment patterns and proven earnings, the Court assessed a reasonable monthly income at ₹1.25 lakh. After applying future prospects, deductions, and the multiplier method, total compensation was recalculated at ₹1.31 crore with interest. The insurer was directed to deposit the enhanced amount within twelve weeks, while the “pay and recover” direction against the vehicle owner was retained.