Indore: Insurance company asked to pay Rs 1.13 crore as compensation after IIT pass-out dies in road accident

Indore (Madhya Pradesh): A local court on Monday ordered that Rs 1.13 crore be paid as compensation to the parents of a youth, an IIT pass-out, who died in a road accident in Chennai. This amount will have to be borne by the insurance company that had insured the truck.

According to information, the insurance company had refused to pay up saying that the parents of the deceased were capable of maintaining themselves. On this, the court clarified that under the Motor Vehicles Act, the amount of compensation is given not to the dependents, but to the heirs. The insurance company will have to pay the compensation amount within 30 days.

Advocate NK Jat said that Ayush Gupta (23) resident of Sanw\ver Road, had studied B Tech, MTech from IIT Madras. He was posted in a multinational company in Chennai and the company used to pay him a salary of Rs 12 lakh per annum. On July 25, 2018, at around 11.30 am, Ayush was hit by a truck in Chennai and he died on the spot.

Ayush's father Rajeev Kumar Gupta and mother Vandana, filed a case in the District Court for compensation against United India Insurance Company Limited, the truck's insurer, R Kalavathi owner of the truck and driver Satish Kumar. The insurance company in their defence argued that Ayush was not wearing a helmet and also did not have a valid licence. Also, Ayush's parents are capable of maintenance, so they are not entitled to compensation.

Advocate Jat said that the court rejected the argument of the insurance company and ordered that it should pay compensation of Rs 1,13,41,932 to the heirs of the deceased. Interest at the rate of six per cent will also have to be paid on this amount from the date of submission of the claim.