Home » News » No Other Amount, Except for Statutory Dues, Are Allowed to Be Deducted From Motor Accident Compensation – Bombay High Court

Aurangabad bench of Bombay High Court noted that no other amount, except for statutory dues, are allowed to be deducted while computing the compensation amount in motor accident claims.

“It is well settled that except for the statutory deduction to be made towards income tax, professional tax, no other deduction is permissible under law. The deduction from the salary of the deceased towards insurance, pension benefits, gratuity, or grant of employment to the kin of the deceased is not permissible, ” stated Justice Achliya.

Bombay High Court was hearing a petition filed by an appellate from Maharashtra’s Ahmednagar district challenging December 2011 order of Motor Accident Claims Tribunal, Ahmednagar. MACT had granted Rs 9 lakh compensation to the widow and her in-laws against the claim of Rs15.5 lakh.

The appellate in her petition had mentioned that she and her husband (a sepoy in Indian Army) were riding on bike on June 2, 2007. When they reached Kamar gaon, a Maharashtra State Road Transport Corporation (MSRTC)-run bus hit the two-wheeler. Her husband died due to serious head injuries and she survived.

She had filed a motor accident claim from the MSRTC worth Rs 15.5 lakh. Motor Accident Claim Tribunal has granted only Rs 9 lakh to the appellate and her in-laws in the 2012 order.

The appellate then challenged the MACT order before Bombay High Court seeking enhancement in the compensation to Rs 15.5 lakh.

Bombay High Court Justice Achliya found that the compensation amount assessment by the tribunal was against the settled position of law and has ordered a compensation worth Rs 23.52 lakh to be equitably paid to the widow and her in-laws.

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