The Calcutta High Court ( HC ) in a significant case of New India Assurance Company, ordered to calculate compensation for accident claims on a Gross salary after deducting Professional tax.
V. Ramraj, the appellant challenged the judgment passed by Motor Accident Claim Tribunal, Additional District Judge, 12th Court, Alipore in connection with Section 166 of the Motor Vehicle Act, 1988, whereby the judge awarded compensation to the tune of Rs. 7,74,732.
A claim petition under Section 166 was filed on account of the death of one V. Rama Devi in an accident alleged to have taken place on 16.07.2003 while crossing Jawaharlal Nehru Road and Shakespeare Sarani near Birla Planetarium at Kolkata. At the time of the accident she was an employee of Hindustan Lever Ltd, Kolkata and used to earn a gross salary was Rs.11,920.83/- per month and a net salary of Rs. 10,373/- per month.
She was aged about 48 years at the time of her accidental death. That is why the husband and son of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, claiming compensation to the tune of Rs.59,97,204/- (after the amendment of the claim amount of Rs.51,81497).
The insurer i.e. New India Assurance Company Limited contested the claim petition by filing a written objection denying all materials averments of the claim petition contending, inter alia, that accident took place due to laches on the part of the victim and claimants are not entitled to any compensation as prayed
The tribunal after evaluating the entire evidence on record together with the documents returned his finding that claimants were entitled to compensation to the tune of Rs.7,74,732/- by assessing it on the net salary instead of gross salary after applying multiplier 13. The claimants stated that the judge ought to have considered the gross income of the deceased after deducting the professional tax only.
A single member coram consisting of Justice Bibhas Ranjan De observed that the income of the deceased ought to have been assessed after deducting the professional tax from the gross salary. Further held that the claimants are also entitled to prospect of 25% of the income of the deceased in terms of age of the deceased at the time of death as well as general damages of Rs.30,000/-.
It was held that the appellants/claimants are entitled to the balance compensation amount of Rs. 7,90,698/along with interest @6% per annum from the date of filing of the claim petition. Respondent no.1, the New India Assurance Company Ltd is directed to deposit the enhanced compensation amount of Rs. 7,90,698/- along with interest of 6% per annum from the date of filing of the claim petitioner till the actual deposit of the amount.
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