Karnataka high court asserts allowances part of salary,raises relief for techie's kin to Rs 2.3 cr

Bengaluru: The high court has increased compensation by Rs 1.5 crore in an accident case, noting that allowances were integral to the deceased software professional's pay package.
The family of Santhosh Kumar Singh will now receive Rs 2.3 crore, plus 6% interest, up from the initial Rs 81.9 lakh awarded by a Bengaluru tribunal.
The accident occurred on Jan 29, 2019, when Singh was riding his scooter in Electronics City. A speeding water tanker from the opposite direction collided with his vehicle, causing his fatal injuries.
His family, including his wife, minor son, and parents, approached the tribunal seeking Rs 3 crore in compensation, stating his monthly income was Rs 1.4 lakh.
The insurance company contested it, claiming the deceased man had been responsible for the accident.
On Nov 2, 2023, the tribunal granted Rs 81.9 lakh in compensation, confirming the water tanker driver's negligence caused the accident. However, it calculated the compensation based on Sigh's Rs 40,000 monthly income, excluding allowances, citing his probationary status. Both Reliance General Insurance Company and the deceased's family appealed against the award.
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A division bench of Justices KS Mudagal and KV Aravind confirmed the water tanker's wrong-way driving caused the accident, dismissing the insurer's appeal. On compensation, it cited the Supreme Court's Pranay Sethi case ruling on considering established income.
The bench noted that additional allowances, including for car, holiday, fuel and vehicle maintenance, performance bonus, and food valet, supplemented the basic salary and the house rent allowance.
Pay slips showed consistent monthly payments, establishing these as part of the agreed employment package.
The bench termed as erroneous the tribunal's assumption about the completion of his probation and the salary stability. It emphasised that the Rs 1.4 lakh salary during probation reflected recognised skills and expertise. Given the deceased man's permanent employment status at age 35, the documented evidence supported the enhanced compensation.
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