NEW DELHI: A private general insurance company has been fined Rs.5,000 by the Delhi High Court for delaying payment of compensation to the family of a accident victim.
Justice V.V. Gupta asked Royal Sundaram Alliance Insurance Company to deposit the fine amount with the Delhi Legal Services Authority.
Mr. Justice Gupta passed the direction on an appeal by the insurance company against a Motor Accident Claims Tribunal judgment awarding a compensation of Rs.6.6 lakh to the wife of the accident victim, Mahesh Gupta. Mahesh Gupta was killed when a car hit the two-wheeler on which he was pillion-riding to Dwarka Road in West Delhi in December 2005. He is survived by his wife and two children.
His widow, Pinky, had moved the tribunal for compensation. In her submission, she said that her husband was a skilled carpenter in a construction company here. His monthly salary was Rs.8,000. She submitted that she should be compensated keeping in view her husband’s monthly salary and skill. The tribunal had allowed her contention. The insurance company opposed the tribunal’s judgment saying that the victim was not a skilled worker.
Upholding the tribunal’s judgment, the Court said insurance companies generally appealled to the High Court just to delay payment of compensation.
Quoting a Supreme Court observation that insurance companies should not harass families of accident victims by delaying payment of compensation, the Court observed that insurance companies should not dither on payment of compensation to victims’ families on flimsy grounds.
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