HC directs insurance company to pay compensation

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New Delhi, Nov 4 (UNI) The Delhi High Court today directed the United India insurance company to pay a monthly amount of Rs 3000 and Rs 1500 each to the wife and minor son of a man who died in a road accident in June 2006.

Justice V B Gupta upheld the order of the Motor Accident Tribunal(MACT) which had ruled that the Insurance company was liable to pay the compensation.The Court, however, modified the terms of payment as directed by MACT.

MACT had held that the death of one Dinesh was caused by a TSR(Three wheeler scooter riksha) but the insurance company denied the charges. Though the insurance company admitted that the TRS was registered with them,they denied its involvement in the accident.

After pursuing all records, MACT directed the Insurance company to deposit Rs 14 lakh in the bank as fixed deposit with an interest of Rs 7000 which shall be paid to the wife and minor son of the deceased. The company moved the High Court against MACT order.

The HC directed the insurance company to deposit Rs 10 lakh in the court till the final outcome of the order which the company adhered to.

In its final order today, the HC held that the lump sum payment is not to the advantage of the dependents as a large part of it frittered away during the litigation and to those who assisted them in the legal process.

The court ordered the insurance company to pay Rs 3000 to the wife and 1500 to the minor son every month. The wife would be given compensation throughout her life, while the son till he turns 21 years. The company will enhance the amount by 25 per cent every five years, the court held.

The court ruled that a lump sum amount of Rs 1,35,000 be paid to the claimants as 30 months had passed since 2006.

It ordered that the amount of Rs 50,000 which was paid by Insurance company earlier as an interim compensation not be deducted by the company from the amount which is being awarded now.

The Court also directed the company to pay Rs 1,35,000 within next two months to the claimants wherby the Rs 10 lakh, which is lying with the court treasury, would be refunded to them.

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