Employee Today

Saturday, 26 December 2015

HC asks insurer to pay Rs 30L to ONGC employee’s kin

The HC said the compensation was resonable and fair
The Bombay High Court recently upheld an order by a district court directing an insurance company to pay Rs 30 lakh to the family of an ONGC employee, who died in an accident in 1999.

Kaushal, then 32, was an MBA graduate working as accounts officer with the Oil and Natural Gas Corporation in Panvel taluka. In December 1999, he was injured when a truck rammed into the mini bus he was travelling in. He died on the way to the hospital.

He drew a salary of Rs 25,000 and his family claimed an insurance of Rs 60 lakh from the New India Insurance Company.

The insurance company, however, denied all liability and blamed rashness and negligence on the part of the truck driver.

The district judge at Raigad-Alibag in July 2011 ordered the insurer to pay Rs 30 lakh to Kaushal’s family.

The judge took into account Kaushal’s gross salary of Rs 25,000, considered income tax and other deductions and deducted an amount of 1/4th to arrive at the figure of Rs 15,000. The insurance company moved the HC against the judgment. The HC recorded that as Kaushal was 32 when he died, a multiplier of 17 was used and the figure of Rs 30 lakh arrived at by the trial court.

The division bench of Justice Abhay Oka and Justice Gautam Patel said, “We find the award and judgment to be reasonable, balanced and fair.”

SOURCE - THE HINDU

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