AMOUNT OF COMPENSATION AWARDED IN COURTS FOR DEATH IN MOTOR VEHICLE ACCIDENT

AMOUNT OF COMPENSATION AWARDED IN COURTS FOR DEATH IN MOTOR VEHICLE ACCIDENT

The amount of compensation awarded in courts for death in motor vehicle accident is discussed below. When a person dies in a motor vehicle accident, his legal heirs can claim compensation in motor vehicles claims tribunal. They can claim compensation against the insurance company in which the vehicle in question has been insured at the time of accident. The court enquires, and award compensation.

The amount of compensation awardable by the court is as follows:

Suppose the deceased  was aged 44 years at the time of accident, occupied  as beedi worker and there by earning Rs.7,000/pm. 25% of his income added towards future prospects, and 1/3 of the income has been deducted for personal expenses and the income is fixed at Rs.5833.34/.Proper multiplier for his age is 14.

Loss of income                                                   ---                               Rs. 9,80,001/

(Rs.5833.34 x 12 x 14)

Loss of estate                                                  ---                               Rs.       15,000/

Funeral expenses                                              ---                                Rs.      15,000/

Loss of consortium                                           ---                              Rs.       40,000/

                                                                                                          --------------------

Total                                                                ---                               Rs. 10,50,001/

                                                                                                          -------------------- 

Normally courts award compensation in this basis in death cases. They also order to pay the cost of the litigation and interest for the award amount from the date of petition till deposit at the rate of 7.5% pa. If the deceased was hospitalized before death and incurred medical expenses, that also will be awarded. This is the way in which the courts award compensation in death cases.