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National
Jharkhand HC Includes Overtime Pay in Deceased Guard's Accident Compensation
✍️ Live Law
🗓 21 Oct 2026, 08:19 PM
👁 12
The Jharkhand High Court has ruled that overtime earnings must be included in the income calculation for motor accident compensation for a deceased security guard.
The Jharkhand High Court has issued a significant ruling regarding the calculation of compensation in motor accident cases involving deceased employees. The bench directed that overtime pay received by a security guard prior to their death must be factored into their total income for the purpose of determining the final compensation amount.
This legal interpretation clarifies that the 'income' of a deceased worker is not limited to their basic salary. By including overtime earnings, the court aims to ensure that the dependents receive a compensation figure that accurately reflects the actual earning capacity of the deceased at the time of the accident.
The judgment addresses a common dispute in insurance and liability cases where insurers often attempt to calculate compensation based solely on basic wages, ignoring additional earnings. The court's stance reinforces the principle that all regular earnings, including overtime, form part of the deceased's economic profile.
This decision is expected to set a precedent for similar cases in the state, ensuring that the financial loss suffered by the family due to the loss of the breadwinner is compensated more comprehensively.
This legal interpretation clarifies that the 'income' of a deceased worker is not limited to their basic salary. By including overtime earnings, the court aims to ensure that the dependents receive a compensation figure that accurately reflects the actual earning capacity of the deceased at the time of the accident.
The judgment addresses a common dispute in insurance and liability cases where insurers often attempt to calculate compensation based solely on basic wages, ignoring additional earnings. The court's stance reinforces the principle that all regular earnings, including overtime, form part of the deceased's economic profile.
This decision is expected to set a precedent for similar cases in the state, ensuring that the financial loss suffered by the family due to the loss of the breadwinner is compensated more comprehensively.