Historic Moment At Gujarat High Court As Lok Adalat Settles Accident Death Claim For Rs 5.40 Crore

The case revolved around the unfortunate demise of Prakash Vaghela, a resident of Bharuch, who lost his life in a car accident in November 2014 while traveling from Vadodara to Ahmedabad airport. Vaghela, a general manager at a private company, had an annual salary package of Rs 31 lakh, and his wife sought a compensation of Rs 6.31 crore, considering his future earning potential.

Initially, the claim was filed in the Motor Accident Claim Tribunal in Bharuch, which awarded a compensation of Rs 38.58 lakh in 2020. However, dissatisfied with the verdict, the family approached the Gujarat High Court, which subsequently quashed the order and instructed the tribunal to reevaluate the case.

In April, the tribunal re-evaluated the compensation amount, setting it at Rs 3.91 crore with 9% interest. At this point, the insurance company, IFFCO Tokio General Insurance Company, appealed to the High Court once again. With the intervention of senior judges and lawyers, both parties reached an agreement, resulting in the insurance company agreeing to pay Rs 5.40 crore to the victim's family.

This landmark settlement is seen as a significant achievement in the realm of accident death claims, showcasing the effectiveness of Lok Adalats in resolving complex legal disputes. The panel overseeing the case, comprising Acting Chairman of Gujarat State Legal Services Authority, Justice N V Anjaria, High Court Legal Services Committee chairman Justice Biren Vaishnav, and secretary B H Ghasura, played a crucial role in facilitating the resolution.

In addition to this remarkable case, the Gujarat High Court's Lok Adalat witnessed the settlement of 98 motor accident claims out of a total of 98 cases. Across the state, subordinate courts also organized Lok Adalats, with the City Civil Court settling 95 accident claim disputes involving a total amount of Rs 5.91 crore.

The highest settlement in the City Civil Court was orchestrated by the United India Insurance Co, which agreed to pay Rs 1.48 crore to the family of a manager of a paint company.

Moreover, 1,724 commercial and civil disputes were successfully resolved in the City Civil Court, along with 242 pre-litigation cases involving Rs 78 lakh.