The Supreme Court has ruled that dependent family members of a government employee who dies in a road accident can claim compensation for loss of income either from the government or the Motor Accidents Claims Tribunal, not both.

A bench of Justices Sanjay Karol and Augustine George Masih delivered the ruling while allowing an appeal filed by Reliance General Insurance Company Limited, challenging a Punjab and Haryana High Court order that had taken a contrary view and allowed the dependents of a deceased government employee to receive compensation from both the Motor Accidents Claims Tribunal (MACT) and the state government.

On November 2, 2009, a motorcycle being driven by Ravinder Kumar, carrying two pillion riders, Hom Devi and Kanika, collided with a jeep, resulting in the death of government employee Hom Devi and injuries to the two others.

The MACT awarded ₹8,80,000 to the dependant family members, who challenged this before the high court, seeking a higher amount.

The high court initially allowed the plea for enhancement but held that the amount received by the family as per the Haryana Compassionate Assistance to Dependents of Deceased Government Employees Rules, 2006, had to be deducted from the total amount of compensation.

The total compensation awarded by the high court in terms of the main order was ₹29,09,240. It held that the amount received by the claimant-respondents as compensation under the 2006 rules and the amount awarded by the MACT would be deducted. But by a subsequent order, the high court directed that the amount received from the government need not be deducted, following which Reliance General Insurance filed the appeal.

Allowing the insurer’s appeal, the apex court cited its earlier decade-old ruling in the Reliance General Insurance vs Shashi Sharma case when a three-judge bench had dealt with a claim for compensation by dependant family members of a government employee who had died in a fatal motor accident.

“This ruling ensures even scales — families receive full compensation for the loss caused by the accident, at the same time, they are not paid twice for the same financial loss. The court’s decision clarifies that when calculating compensation, only overlapping or equivalent benefits are taken into account for deduction, leaving unrelated assistance intact,” the apex court said, while setting aside the high court order.