Insurance News: Widow wins insurance claim despite getting job : Bombay High Court

Granting respite to a woman whose husband was killed in a mishap, the Nagpur bench of Bombay High Court (HC) has ruled that she was entitled to full compensation from the insurance company despite getting a job on compassionate ground.

HC dismissed recently an appeal by New India Assurance Company challenging a Motor Accidents Claim Tribunal (MACT) order of August 23, 2008, awarding Rs 11.48 lakh to Chandrapur resident Vandana Ramteke, whose husband Pradeep was killed in a road accident on August 7, 2001.

Pradeep, who was working with Western Coalfields Limited (WCL) on a monthly salary of Rs 10,195, was going to office when a truck insured by New India Assurance Company knocked him dead.

Considering the income of the deceased, the loss of dependency was worked out to Rs 73,200 per annum and by applying a multiplier of 16, having regard to age of the deceased, MACT awarded a compensation of Rs 11.81 lakh.

Taking into consideration various deductions, it said the carry-home salary of the deceased was Rs 9,475. After deducting his personal and living expenses (one-third), the loss of dependency per month came to Rs 6,100.

The company objected to the quantum of compensation, saying Vandana had been offered compassionate employment by WCL.

The counsel for the respondent relied on various decisions to support his contention that a widow getting employment on compassionate ground had nothing to do with compensation to be awarded on account of death of her husband.