In Brief
National Insurance Company challenged compensation awarded to the parents of Amol Verma, a 26-year-old M.Tech graduate who worked at IIT Roorkee and died in a motor vehicle accident. The tribunal had excluded his Rs.12,000/- monthly fellowship (in addition to Rs.3,000/- salary) when calculating dependency compensation. The Supreme Court held the tribunal erred; the fellowship must be included, bringing annual income to Rs.3,00,000/-. The Court also modified the dependency calculation by applying a 50% deduction for personal expenses (instead of 1/3rd), reducing compensation from Rs.34,00,000/- to Rs.25,50,000/-. Upholding awards for loss of affection and funeral expenses, the Court fixed total compensation at Rs.26,75,000/- plus 9% interest from claim filing date.
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