New India Assurance Co. Ltd. vs Kamlesh and Others.

Held: Rules of 2006 permits the last drawn salary of the deceased to be continued to the family of the employee but for different periods dependent upon the age of the deceased – Proper method would be for tribunal considering the death of a government employee, to whom the Rules of 2006 is applicable, to first consider the loss of income, quantum of compensation with reference to loss of income and to deduct the pay and allowances payable under Rules of 2006 – If the compensation for loss of income arrived at under the M.V. Act is more, then necessarily the difference has to be paid to the claimants – Deceased was earning for a family comprised of five persons, in which context, deduction for personal expenses would be 1/4th – Last drawn salary of the deceased should have been reckoned for the purpose of calculating the loss of income under the M.V. Act also – Considering the fact that no deduction for the income tax was made in the amounts entitled to the family of the deceased for 12 years, which would be deducted only from monthly payments, there could be no deduction made even while computing the loss of income from the last drawn pay, for income tax – Since the amounts payable under the Rules of 2006 is the last drawn pay in computing the loss of income under the M.V Act necessarily the future prospects will have to be added and the multiplier applicable would be 14 since the age of the deceased was 43 – Computation would be Rs.49,31,527/- from which the amounts payable as financial assistance under the Rules of 2006 will have to be deducted – Additional loss of income payable under the M.V. Act would be Rs.5,96,019/- to which loss of consortium for the widow and three children at Rs.1,60,000/- and loss of estate and funeral expenses of Rs.30,000/- would be added – Total compensation would be Rs.7,86,119/- .[Paras 13-17]