Widow should get Insurance compensation though she got job: HC

The High Court, yesterday, dismissed an appeal filed by New India Assurance Company Ltd, challenging the Motor Accidents Claim Tribunal's (MACT) order of August 23, 2008, awarding Rs 11.48 lakh compensation to Chandrapur resident Vandana Ramteke, whose husband Pradeep was killed in a road accident on August 7, 2001.

Pradeep, who was working with Western Coalfields Ltd (WCL) on a monthly salary of Rs 10,195, was going to his office when a truck, insured with the petitioner company, knocked him dead.

The tribunal, after considering the income of the deceased, worked out the loss of dependency at Rs 73,200 per annum and by applying a multiplier of 16, having regard to age of the deceased, awarded Rs 11.81 lakh compensation.

Taking into consideration various deductions, the MACT stated that the carry-home salary of the deceased was Rs 9,475. After deducting one-third amount towards his personal and living expenses, the loss of dependency per month came to Rs 6,100.

The company raised objection to the quantum of compensation, contending that the deceased's wife was offered compassionate employment by the employer (WCL) and in view of that, the loss of dependency worked out by the MACT was on a much higher side.

The counsel for the respondent relied upon various decisions to support his contention that factors like widow of the deceased getting employment on compassionate ground had nothing to do with compensation to be awarded on account of death. (MORE)