Total Pageviews

Friday, August 13, 2010

Compensation--Dependency--Amount of contribution to General Provident Fund is not be reduced from salary of deceased for purpose of calculation of dependency.

2010(3) LAW HERALD (P&H) 2048
IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
The Hon’ble Mr. Justice Rajesh Bindal
F.A.O. No. 2049 of 1994 (O&M)
Smt. Anguri Devi & Ors.
v.
Ramesh & Ors.
{Decided on 05/04/2010}
For the Appellants: Mr. R. N. Lohan, Advocate.
For the Respondent: None.
IMPORTANT POINT
Compensation--Dependency--Amount of contribution to General Provident Fund is not be reduced from salary of deceased for purpose of calculation of dependency.
(A) Motor Vehicles Act, 1988, S.166--Compensation--Dependency--Amount of contribution to General Provident Fund is not be reduced from salary of deceased for purpose of calculation of dependency--Contribution by deceased on account of Group Insurance Scheme is a kind of expense of premium paid for which benefit of insurance must have been paid to family was rightly reduced by Tribunal for purpose of calculation or dependency. (Para 8 & 9)
(B) Motor Vehicles Act, 1988, S.166--Compensation--Calculations--Claimants being five reducing 1/3rd on account of personal expenses for purpose of calculation of dependency is set aside--Dependency directed to be calculated by reducing 1/4th therefrom--Considering age of deceased to be 30 years plus, multiplier of 16 would be quite reasonable--Monthly income of deceased is Rs. 3,379/- i.e., Rs. 40,548/- per annum--After application of cut of 1/4th, dependency comes to Rs. 30,411/- per annum--Applying multiplier of 16, compensation payable to claimants comes out to Rs. 4,86,576/-, which is rounded off to Rs. 4,87,000/-.--In addition, a sum of Rs. 5,000/- on account of funeral expenses and Rs. 5,000/- on account of consortium awarded--Amount on account of loss of consortium shall be paid to widow only--Enhanced amount of compensation shall carry interest @ 6% per annum from date of filing of claim petition till its payment--Out of enhanced amount of compensation, Rs. 25,000/- each along with interest shall be paid to parents of deceased and rest of compensation shall be paid to widow considering fact that she had been taking care of family all along ever since death of husband. (Para 10 & 11)