MV Act | 'Gross Salary To Include Gratuity, HRA, Etc': Gujarat High Court Grants ₹1.07 Crore Compensation To Deceased Motorcyclist's Kin

.The Gujarat High Court enhanced the compensation awarded to the legal heirs of a deceased motorcyclist to ₹1.07 crore, who died after colliding with a tanker illegally parked on a highway at night without reflectors, parking lights or warning signals.In doing so the court dismissed the insurance company's appeal which had challenged the award of over Rs. 97 Lakh granted by the Motor Accident Claims Tribunal. The court however increased the compensation by enhancing amounts awarded including Loss of consortium from Rs. 40,000 to Rs.1,93,600, Justice Hasmukh D. Suthar ordered, “The Insurance Company is directed to deposit the reassessed amount of compensation i.e. Rs.1,07,32,684/- along with accrued interest as ordered by the learned Tribunal within a period of FOUR WEEKS from the date of receipt of this judgment.The Tribunal shall disburse the entire amount of compensation (lying in the FDR and/or with the Tribunal including the enhanced amount of compensation), with accrued interest thereon, if any, to the claimants, by account payee cheque / NEFT / RTGS, after proper verification and after following due procedure.”The deceased was riding his motorcycle at a slow speed on the correct side of the road while travelling to Pavagadh and when he reached Gopipura Cross Roads on the main state highway, he collided with a tanker which had been illegally and unauthorisedly parked in the middle of the road at night, without any reflectors, parking lights or any warning signals. Due to the absence of visibility, the deceased dashed his motorcycle with the tanker and succumbed to death due to his injuries. Following this, the legal heirs of the deceased filed a claim petition seeking compensation of Rs. 90 Lakhs. The Tribunal held original opponent no. 1 – driver of the vehicle (offending tanker) solely negligent for the accident and awarded compensation of Rs. 97,07,248 with 8% interest per annum to the claimants. The Court noted that the insurance company challenged the judgement on the grounds of contributory negligence, alleging that the deceased motorcyclist was riding rashly and negligently. Though, the insurance company did not dispute the Tribunal's finding on negligence after perusing the material on record therefore, the issue of negligence did not warrant further examination.The Court further noted that the Tribunal rightly held the driver of the offending tanker solely negligent as per Supreme Court's decisions in Bimla Devi vs. H.R.S.T.C. and Parmeshwari Devi vs. Amir Chand by appreciating the evidence qua negligence emerging on the record.The Court then held, “Hence, present appeal fails as the learned Tribunal has properly appreciated the evidence qua negligence and perusing the evidence on record, learned Tribunal has rightly come to the conclusion that the driver of offending Tanker i.e. stationary vehicle was solely negligent for the accident and reasons assigned by the learned Tribunal does not call for any interference at the hands of this Court…”The court with regards to cross objection of the claimants, noted that while determining the quantum of compensation, the Tribunal found the deceased to be 35 years old, employed as a Senior Mechanical Engineer at M/s Gunnedbo India Pvt. Ltd., GIDC, Halol, earning a gross salary of Rs. 55,000/- per month. "The salary slip (Exh.40) of the deceased is produced on record demonstrating the gross salary of the deceased. The learned Tribunal has also considered the appointment letter issued to the deceased. To award just and proper compensation, the learned Tribunal has considered the salary of the deceased for the month of August, 2016 i.e. Rs.44,817/- but perusing the record and salary slip produced on record including basic salary, educational allowance, transport allowance, medical bills, leave travel assistance, gratuity, HRA and salary towards leave is required to be considered after deducting Rs.200/- towards professional tax and thus, the monthly salary of the deceased is re-assessed at Rs.48,624/- to award just compensation under the head of future loss of dependency," the court said. The Court then enhanced the amount of loss of estate and funeral expenses to Rs. 18,150 each, Rs. 1,93,600 (48,400 x 4 dependents on the deceased) towards filial/parental consortium, and Rs. 1,05,02,784/- towards the future loss of dependency, totalling it to an amount of Rs. 1,07,32,684. The court thus dismissed the insurance company's appeal and partly allowed the claimant's appeal. Case Title: Reliance General Insurance Co. Ltd. Vs Shitalben W/o Jigneshkumar Parekh & Ors. Case Number: First Appeal No. 195 of 2022Click Here To Read/Download OrderCitation: 2026 LiveLaw (Guj) 25

MV Act | 'Gross Salary To Include Gratuity, HRA, Etc': Gujarat High Court Grants ₹1.07 Crore Compensation To Deceased Motorcyclist's Kin

Lovina B Thakkar

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MV Act | 'Gross Salary To Include Gratuity, HRA, Etc': Gujarat High Court Grants ₹1.07 Crore Compensation To Deceased Motorcyclist's Kin

Lovina B Thakkar

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Lovina B Thakkar

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