Madras High court
Madras High courtFile

HC confirms MACT’s relief to dependants in 10-yr-old accident case

The bench comprising Justice VM Velumani and Justice S Sounthar passed the direction on closing a civil miscellaneous appeal filed by United India Insurance.

CHENNAI: Ten years after the death of a man along with his wife and child in a road accident, a division bench of Madras High court confirmed the award of a Motor Accident Claims Tribunal directing an insurance company to pay Rs 1.49 crore as compensation to dependants/parents of the deceased.

The bench comprising Justice VM Velumani and Justice S Sounthar passed the direction on closing a civil miscellaneous appeal filed by United India Insurance.

The company wanted to set aside an award issued by the tribunal, Principal District Court, Krishnagiri, in 2015, which directed it to pay Rs 1.49 crore to the dependents/parent of Rajesh Velu (29), who died in a road accident in 2012, along with his wife and child near Krishnagiri.

According to UII, the total compensation granted by the tribunal was excessive. “The tribunal failed to consider that the allowances will vary every month and the deceased will not be getting the same amount every month. The tribunal ought to have fixed the average income of the deceased only at Rs 99,000/month instead of Rs 1.50 lakh,” the appellant submitted.

Nevertheless, the respondents wanted to fix the monthly salary as Rs 2 lakh. “Apart from salary, the deceased was regularly paid incentives and bonuses for the business growth of the company,” submitted K Prasanna, advocate representing the family.

Parents also noted that the tribunal erroneously applied a multiplier ‘11’ instead of ‘17’ for calculating the compensation. “The deceased was married, and the tribunal ought to have deducted 1/3rd towards personal expenses instead of deducting 50%,” the respondents argued.

Recording the submissions, the judges held that the deceased was in a permanent job and hence, the 50% enhancement granted by the tribunal is not erroneous. “The total compensation awarded by the tribunal is just compensation and it does not warrant any interference by this court,” they added. “The sum awarded by the tribunal as compensation to the respondents along with interest and costs is confirmed.”

Dismissing the appeal, the judges directed the insurance company to pay within six weeks.

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