Madras HC upholds 15% deduction from compensation in accidental death case for failure to wear helmet

Read Time: 05 minutes

Synopsis

Court approved the Motor Accident Claims Tribunal's decision to deduct 15% amount from the compensation for contributory negligence

acThe Madras High Court recently made a significant deduction from the compensation awarded to the family of a motor accident victim due to the victim's failure to wear a helmet while riding a two-wheeler.

Court approved the Motor Accident Claims Tribunal's decision to deduct 15% amount from the compensation towards contributory negligence. Court deducted Rs 13.42 lakh from the total compensation of Rs 89.49 lakh, which the family was entitled to receive.

The division bench comprising Justices R. Subramanian and R. Sakthivel held that since the challenge before it was restricted to the quantum of compensation awarded by the Tribunal, therefore, it would not be fit to delve upon the other aspects viz., negligence and liability

Consequently, they attributed 15% of contributory negligence to the victim, resulting in the deduction from the compensation amount.

Despite pleas from the claimants' counsel to reconsider the deduction, the court upheld its decision. Consequently, the insurance company was directed to pay Rs 76.06 lakh to the family, with adjustments made for the deduction. Under the revised compensation plan, the widow would receive Rs 26.06 lakh, while each minor child would be allocated Rss 22 lakh, and the aged father would be granted Rs 6 lakh.

Moreover, the court ordered that the compensation, along with a 7.5% interest rate dating back to the claim's initiation in 2017, should be paid within eight weeks. Additionally, the share designated for the minor children should be deposited in a nationalized bank until they reach the age of majority, court directed.

The division bench was dealing with an appeal filed by the insurance company in 2021, contesting the Motor Accident Claims Tribunal's order. The company argued that the tribunal had inaccurately calculated the victim's monthly income, overlooking certain allowances and arrears.

Accepting this argument, the judges adjusted the victim's monthly income to Rs 40,674 and recalculated the compensation accordingly, considering various factors such as the victim's remaining service period, future prospects, loss of consortium, funeral expenses, among others.

The accident occurred on February 2, 2017, when the victim, accompanied by his wife as a pillion rider, collided with another speeding two-wheeler traveling in the wrong direction on a bypass road. While the victim succumbed to the injuries sustained in the accident, his wife, who suffered injuries, pursued compensation claims for herself and on behalf of her six-year-old daughter and five-year-old son.

Case Title: The Divisional Manager v. S.Rathna and Others