Family Pension Cannot Be Deducted While Calculating Loss Of Income In Motor Accident Claims: J&K & L High Court

The Jammu & Kashmir and Ladakh High Court held that in calculating the loss of income in a fatal motor accident claim under the Motor Vehicles Act, 1988 the amount of family pension being received by dependents cannot be deducted from the income for purposes of assessing loss of dependency. The Court emphasised that pension is not a gratuitous payment but rather a deferred earning and cannot be treated as self-supporting income of the dependents that would reduce the compensation. The Court therefore directed Tribunals and Courts not to mechanically deduct family pension from computation of loss of dependency, reaffirming the benevolent object of the Act which aims to provide “just compensation” and protect dependents of accident victims.