Indore court orders insurer to pay Rs 3.20 crore to family of road accident victim

A district court in Indore has ordered an insurance company to pay Rs 3.20 crore to the family of a young man killed in a road accident. The court said that dearness allowance, house allowance and similar allowances must be added when a person's salary is determined, because their benefit goes not to the individual alone but to the entire family.

The insurer must also pay interest at six per cent on the compensation from the date the claim was filed. With interest, the amount comes to more than Rs 3.5 crore.

The case concerns Shaktisingh, a resident of Tukoganj who worked at TCS. On December 29, 2024, he was returning home on a motorcycle with two friends when a speeding bus hit the motorcycle hard near Emerald School. Shaktisingh was seriously injured. He was taken to hospital, where doctors declared him dead.

His wife and other relatives, through advocate Rajesh Khandelwal, filed a compensation claim against the company that had insured the bus. The insurer tried to avoid liability, saying the bus driver did not have a valid licence and the bus had no fitness certificate or permit. The court did not accept these arguments.

Khandelwal told the court that Shaktisingh's untimely death had plunged the family into crisis. He drew an annual package of Rs 30 lakh at TCS, and his income was also very likely to rise. In support, Khandelwal produced the Form 16 issued by the company. The insurer said income tax returns had not been produced in the case, but the court rejected this argument too.

Khandelwal said that along with awarding Rs 3.20 crore, the court has also clarified the position on interest. The insurer must pay interest on this amount at six per cent a year from January 10, 2025.