Legal Question in Insurance Law in India

Accident Claim from Insurance Company, India

Dear Sir,

My son aged 25 (Diploma Holder) was working as a senior engineer(Ashoka BuildCon Pvt Ltd) -Roadways and was drawing a consolidated pay around of Rs.10,000/- pm. While he was proceeding to his duty on 30/04/2001, he met with an accident by a Lorry and died while on the way to hospital.The Lorry Driver surrendered at Local Police Station and accepted his mistake. The lorry was insured with New India Assuance Company. The Local Court gave the verdict that it was an accident and also fined the lorry driver. For the compensation purpose, a case was filed against the insurance company at Special Court, Krsihnagiri, Tamil Nadu.

In the petition, the claim was Rs.35,00000/-. All the required papers were properly produced. The case is now being in the judgement stage which says that a diploma holder is eligible only for Rs.9,72000/- as compensation which I feel is very low for my son case cosidering his age, qualification, experience(5 years) and his post. He also got a offer from L&T Company as AE after his demise.

Is it worth going for a appeal in Madras High Court ?.

Please kindly consider my case and reply. Waiting for you reply.

Thanks


Asked on 2/27/03, 5:11 am

4 Answers from Attorneys
Sanjeev Dudhat Sanjeev Dudhat

Re: Accident Claim from Insurance Company, India

Criteria for deciding comensation is

1. Income of the person at the time of death

2. How much he spends on his dependants.

3. His average life expectancy.

4. How much income he could have made considering the income which he was earning, if he would have lived.

5. Pain and suffering is not a very tangible criteria for compensation.

Considering his income and his age, he can be expected to live at least for 60-65 years. His offer with L&T shows that with type of training he has, he could have got rised the ladder of success very fast. Try to collect information of people having similar type of qualification and expected growth in their economic status, from different age groups. This can help you to challenge the judgement from the aspect of how much the deceased could possibly have earned. Yes with such type of study you may have a good case for appeal.

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Answered on 2/27/03, 11:42 pm
Kamal Verma Kamal V. Verma & Associates

Re: Accident Claim from Insurance Company, India

I would advise you to go in for appeal but with

thorough preparation of your case, facts and law

in question.

Considering your facts, prima facie it appears that

you are entitled to much higher compensation subject

to advise mentioned above.

Kamal V. Verma & Co.

[Advocate - Gujarat].

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Answered on 3/02/03, 12:35 pm
Umesh Bhagwat Bhagwat&Co.

Re: Accident Claim from Insurance Company, India

It is definitely woth filing an appeal in the High Court as the compensation is grossly inadequate.

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Answered on 2/27/03, 6:20 am
Shrichand Nahar S.V.Nahar, Advocate

Re: Accident Claim from Insurance Company, India

I appreciate your feelings on the point. However,

normally quantum of claims are now decided on the basis of Schedule appended to the Motor Vehicles Act. If the claim computed by the Motor Accident Claims Tribunal is more or less correct as per the said Schedule, an Appeal against the award may not fetch you much enhancement.

However, as you may be knowing, our law is not very developed in respect of computation of quantum and there is a bright possibility of some ruling from the Apex Court supporting your views.

As such, it is advisable to file an Appeal in the High Court.

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Answered on 2/27/03, 10:14 am


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