In Brief
This motor accident case involved the appeal of an insurance company against a tribunal's award of Rs. 1.68 crore in compensation to the widow and adopted child of a Vice President who died in a car accident while travelling in the employer's vehicle. The key issue was whether an employee travelling in an employer's car is a third party covered by the comprehensive insurance policy. The Court held that an employee-occupant is indeed a third party, distinct from their employment status, and is covered by the policy. The Court also upheld awarding 30% future prospects to the deceased, aged 49, given his imminent promotion prospects to Managing Director, despite the thumb rule against such awards for persons over 50.
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