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Insurer to pay Rs 80 lakh to wife, parents of road mishap victim

The tribunal took into consideration the victim’s annual salary package, his education and working experience to reach the compensation amount.

punjab Updated: Jul 03, 2018 12:40 IST
Aneesha Bedi
Aneesha Bedi
Hindustan Times, Chandigarh
Motor Accident Claims Tribunal,Chandigarh,New India Assurance
The insurance company was directed to pay the amount as it could not prove that the driver didn’t have a valid driving licence.(A Representative Image)

The Motor Accident Claims Tribunal, Chandigarh, has directed the New India Assurance, a public sector concern, to pay Rs 80 lakh to the wife and parents of a 28-year-old private insurance firm manager who died in a road mishap in Sector 8 last year.

The tribunal took into consideration victim Sumit Sharma’s annual salary package of Rs 5 lakh, his management education from a UK-based university and working experience with major companies to reach the compensation amount.

While 60% of the amount will be paid to his wife, Kusum, 28, his mother, Saroj, 48, and father, Shiv Kumar, 50, will get 20% each.

Sharma was working as a deputy channel development manager with Exide Life’s Chandigarh branch since June 2017.

On the night of September 14, 2017, he and his wife were on their way to Maloya from Manimajra when a rashly driven Mahindra Scorpio (with Himachal Pradesh registration number) rammed into their motorcycle. The two were dragged along by the SUV before it came to a halt on hitting an electricity pole and the gate of a house.

The couple was taken to the Post Graduate Institute of Medical Education and Research (PGIMER), where Sumit was declared brought dead.

A case of rash and negligent driving was registered against the SUV driver, Anish Dewan.

Future prospects taken into consideration

Referring to the Supreme Court judgment in National Insurance Company Limited vs Pranay Sethi and others, the tribunal stated: “While determining the income, an addition of 50% of actual salary to the income of the deceased towards future prospects, where the deceased had a permanent job and was below the age of 40 years, should be made. The addition should be 30% if the age was between 40 and 50, and 15% if between 50 and 60 years. Actual salary should be read as actual salary less tax.”

According to law laid down in Smt Sarla Verma’s case, keeping in view the age of the deceased (28 years), a multiplier of 17 would be appropriate, the judgment read. The total compensation came to Rs 78.6 lakh, which was further enhanced to add funeral expenses and counsel fee.

The insurance company was directed to pay the amount as it could not prove that the driver didn’t have a valid driving licence.

First Published: Jul 03, 2018 12:40 IST