Just compensation under motor accident law includes family-beneficial salary components and deferred benefits, excluding only tax and reimbursements.

Under Section 168 of the Motor Vehicles Act, 1988, "just compensation" requires a broad and realistic assessment of the deceased's income, not a narrow focus on take-home pay. Salary components and family-beneficial monetary or deferred benefits such as allowances, provident fund contributions, gratuity, superannuation, insurance and similar perquisites were treated as part of income because they would have accrued to dependants as household support. Medical reimbursement was excluded because it is only repayment of actual expenses, and only the statutory tax component was deductible. The compensation assessed by the High Court was not disturbed.

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Issues: Whether, for determining just compensation under Section 168 of the Motor Vehicles Act, 1988, the deceased's income should include salary components such as allowances, provident fund contribution, gratuity, superannuation benefits and other family-beneficial perquisites, while excluding only statutory deductions and purely personal reimbursements like medical reimbursement.

Analysis: The expression "just compensation" in Section 168 was held to require a broad and realistic approach. The relevant inquiry is not confined to the bare take-home pay, but extends to the full pay packet and other monetary or deferred benefits which would have accrued to the family as part of the deceased's contribution to household income. Contributions towards provident fund, gratuity, superannuation, insurance and similar family-oriented benefits were treated as relevant, because they represent deferred value or future advantage to the dependants. At the same time, medical reimbursement was excluded as it was considered a reimbursement for actual expenses and not part of income. The Court further held that only the statutory tax component was liable to be deducted from such income.

Conclusion: The income for computing compensation must include family-beneficial allowances and perquisites, subject to deduction only of statutory tax, and the compensation assessed by the High Court was not interfered with.

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