Excelsior Correspondent
Srinagar, Nov 1: Considering the appeal filed by an Insurance Company against the Motor Accident Claim (MACT) award, the High Court said the family pension cannot be deducted while computing loss of dependency of claimants.
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The award passed by Motor Accidents Claims Tribunal whereby Petition of next kins of deceased claim was allowed. The Bench of Justice Sanjay Dhar while dismissing the contentions of Insurance Company said, the family pension drawn by the claimant after the death of her husband is not eligible to be deducted while computing the loss of dependency of the claimants due to the death of the deceased.
Rs 1.85 crores along with interest was sought by the wife of the deceased on account of the death of her husband in a car accident leading to fatal injuries and his ultimate demise. While assessing the compensation, the Tribunal calculated the monthly income of the deceased at Rs. 30,316 from pension and Rs. 6,000 per month from business.
The total annual income of the deceased was, accordingly, taken as Rs. 4,35,792. After deducting one-fourth towards the personal and living expenses of the deceased, the annual loss of dependency of the claimants was assessed at Rs.3,26,844
The Insurance company before the court pleaded that the claimants have sought exorbitant amount of compensation to which they are not entitled while computing the income of the deceased, the Tribunal did not take into account the fact that the claimant is the widow of the deceased and is now receiving family pension after the death of her husband. It was submitted that the amount of pension which the widow is getting, is eligible to be deducted while assessing the loss of dependency to the claimants.
The court while referring to the ruling of the Supreme Court in a likewise case said while computing the loss of income, it would not be permissible to deduct the pensionary amount and that for the purpose of computing the loss of income, the monthly salary has to be accepted without deducting the pension amount.
“For the foregoing reasons, I do not find any ground to interfere in the award passed by the Tribunal. The appeal lacks merit. The same is, accordingly, dismissed. The awarded amount, if deposited, with the Registrar Judicial of this Court shall be released in favour of the claimants in accordance with the terms and conditions mentioned in the impugned award passed by the Tribunal”, the court concluded.
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