Analyzing Importance of Salary Certificates in Compensation Claim

In a recent legal case, the court’s thorough analysis focused on the importance of salary certificates in a compensation claim. The court’s examination of the presented evidence, particularly the salary certificates and bank statements, highlighted their crucial role in determining the compensation amount. This blog delves into the legal nuances of how the court assessed the reliability and relevance of the salary certificates, emphasizing the meticulous approach in analyzing key evidence to reach a fair judgment.


  • Spouse of the deceased presented salary certificates and bank statements in support of the compensation claim.
  • Appeal stems from a June 27, 2017, judgment of the Madras High Court’s Division Bench.
  • Liability placed on both the owner of the vehicle and the insurer jointly and severally.
  • Court directed the apportionment of the specified amount between the appellants, the wife, and mother of the deceased.
  • The compensation payable to the appellants is recomputed by considering the annual income at the rate of Rs 23,419 per month.
  • One third of the income is deducted towards personal expenses.
  • Future prospects are added by 40% to the net income.
  • The total compensation is calculated using a multiplier of 17.
  • Standard additions of Rs 70,000 are included.
  • The total compensation payable is determined as Rs 45,28,981.

Also Read: Court’s Jurisdiction in Re-appraising Arbitrator’s Findings


  • The issue in the present appeal pertains only to the quantum of compensation.

Also Read: Contrary Directions in Issuance of Letter of Intent


  • In the case, the deceased was a BSc in computers and worked in a private company.
  • The appellants argued that the High Court should not have dismissed the salary certificate for May 2012 due to ample evidence provided.
  • The deceased was gainfully employed in a private company, which was an important aspect of the case.

Also Read: Application for Stay in Civil Suit Rejected: Court’s Legal Analysis


  • Learned counsel for the insurer emphasized the significance of the salary certificate and bank statements provided as evidence.
  • The salary certificate for May 2012, reflecting the net pay of the deceased as Rs 23,419, was specifically highlighted as crucial for the proximity to the accident.
  • The High Court acknowledged and considered the relevance of the salary certificates and bank statements during the case.
  • The lack of effort from the insurer to challenge the authenticity or reliability of the salary certificate presented by the deceased’s spouse was noted in the cross-examination.
  • The deposition explained the relationship of Carrier Race Technologies Limited as a sister concern, adding context to the salary information.
  • Overall, the consistent emphasis on the importance and reliability of the salary certificate by both parties reinforces its significance in the case.
  • In grant of future prospects, the standard addition of Rs 70,000 is made
  • The multiplier used is 17
  • Guided by the judgment in National Insurance Company Limited v Pranay Sethi
  • High Court applied the correct multiplier
  • There is no dispute regarding the multiplier used
  • The correctness of the multiplier applied by the High Court is accepted


  • Appellants entitled to total compensation of Rs 45,28,981 rounded off to Rs 45.29 lakhs
  • Interest payable at nine percent per annum from date of filing claim petition until payment
  • Appeal allowed in above terms
  • Pending application disposed of
  • Enhanced amount to be paid in equal proportion to appellants with accrued interest
  • No order as to costs


Case Number: C.A. No.-002511-002511 / 2020

Click here to read/download original judgement

Leave a Reply

Your email address will not be published. Required fields are marked *