India's Supreme Court ruled that amounts received under employer-provided group insurance or other social security benefits cannot be deducted from compensation awarded under the Motor Vehicles Act.
On 17 March, a bench led by Justice Pankaj Mittal dismissed appeals against rulings by the Kerala and Karnataka High Courts, which had determined that such group insurance payouts to claimants after a victim’s death should not be deducted from compensation.
In upholding the decisions of the two lower courts, the Supreme Court confirmed that employer-provided benefits are separate and not subject to deduction from compensation under the Act.
The Supreme Court said benefits received under social security schemes are not considered “pecuniary benefits” and therefore cannot be deducted from compensation.
The Court also rejected arguments that this would amount to a “double benefit”, noting that employer-provided insurance arises from a separate contract and is independent of compensation under the Motor Vehicles Act.