Madras HC directs Tribunal to award Rs 5 lakh more to MTC accident victim’s kin.

Source –

The Madras High Court has ordered the Accident Claims Tribunal to enhance the compensation awarded by Rs 5 lakh in a case involving the death of a teenager by an MTC bus. Under the original compensation, MTC was ordered to pay Rs 7 lakh as compensation to the family of the deceased.

According to reports, the accident which claimed the life of M Arjun, who was just 19 years old, happened 10 years ago. A speeding MTC bus had hit Arjun’s two-wheeler in north Chennai. Arjun died on the spot.

It was proved that the accident was caused due to rash driving by the MTC driver. The Accidents Claims Tribunal ordered MTC to award Rs 7 lakh as compensation to Arjun’s family. However, Arjun’s parents appealed against the compensation before the High Court.

The court noticed that the Claims Tribunal had made an error in computing Arjun’s future prospects and that he was only 19 when he died in the unfortunate accident. Arjun was working as a site supervisor at the time of his death and was earning Rs 8,000 per month as salary.

The court held that as per Supreme Court guidelines, 40% must be added towards the future prospects of the deceased while awarding compensation to the kin of the deceased. Hence, the High Court ordered the Tribunal to increase the compensation by Rs 5 lakh and ordered MTC to deposit Rs 12.04 lakh within four weeks of the order, after which Arjun’s family can withdraw the amount according to the Tribunal’s orders.

Recently, the Madras High Court directed that compensation towards victims of motor vehicle accidents shall be paid only by means of fixed amounts per month and not in a lump-sum amount. The court ordered the implementation of Motor Accident Claims Annuity Deposit Scheme (MACAD), through which the compensation amount will be deposited in a bank account and the family of the victim can withdraw it in equated monthly instalments (EMIs) for a fixed term.