Search the Internet          Tips  Sites: Finance, Investment

HC awards Rs 90-mn compensation to NRI's widow

In a significant judgement, the Delhi high court has awarded a maximum compensation of Rs 90 million (Rs 9 crore) to the kin of a US-based NRI doctor, who died in a road accident on Delhi-Jaipur highway six years ago.

While enhancing the amount of compensation to Rs 90 million from Rs 11.9 million, awarded by a Motor Accident Claims Tribunal (MACT), Justice B A Khan directed the United India Insurance Company to pay the compensation on the basis of existing exchange ratio in terms of US dollars.

Justice Khan said that the MACT had committed an error in assessing the net income of the deceased as reflected in the income tax returns, filed by him in 1994, which was certified by the Indian Consulate in Chicago.

The tribunal had erred in deducting two-third of assessed income for personal expenses of the deceased doctor S K Mahajan, the court said.

"It seems that the tribunal had unnecessarily diverted to the American lifestyle to presume that a US citizen was spending more on himself and less on family or dependents," the court observed while enhancing the compensation to $22,62,970, which as per the existing rupee exchange rate comes to Rs 90 million.

The court gave the order on an appeal filed by doctor's widow Patricia Jean Mahajan, who said that the tribunal had given 'very less' compensation, while the claim before it was for Rs 540 million, which was based on the earnings of her husband at the time of the accident.

Tell us what you think of this report