Insurance Claim: Calculation

Accident Claim (MACT)

Motor Vehicles Act, 1988 (59 of 1988), Section 166 — Compensation in motor vehicle accident case – Deceased 40 years old – Widow and three minor children dependent — Assessment of notional income –Proceedings for 22 years — Compensation with 12% interest p.a. — Income of the deceased in 1984 was 750 Qatari Riyal p.m. — Accident occurred on 18.11.1998, which is 15 years after he shifted to Doha – He was evidently doing fairly well, by taking an increment of 10% per annum from 1984 till 1998, the notional income of the deceased could be fixed at 2590 Qatari Riyal p.m., which can be rounded off to 2600 Qatari Riyal p.m. — In 1998, 1 Qatari Riyal was equivalent to 12.41 INR, income of the deceased would work out to 2600 x 12.41 = Rs. 32,266 p.m. i.e. Rs. 3,87,192 p.a. — 50% of the income of the deceased deducted towards personal expenses, since he was living in a foreign country – Future prospects @30% and multiplier of 15 given — For loss of Estate, Rs. 15,000, Loss of Spouse Consortium Rs. 40,000, Parental Consortium: 40,000 x 3 = Rs. 1,20,000 and Funeral Expenses, Rs. 15,000/- awarded – Total compensation to be paid comes to be Rs. 39,65,125/- — After deducting for 50% contributory negligence amount payable comes to Rs.19,82,563/- — Since dependents have been pursuing legal proceedings for grant of compensation since past 22 years, interest @ 12% p.a. awarded from the date of filing the claim petition, till realisation.

Leave a Reply

Your email address will not be published. Required fields are marked *