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Report No. 111

11.4. Indian case law as to insurance.-

In India, it is now well settled that the amount of insurance payable to a dependent of the deceased cannot be deducted from the damages payable under the Fatal Accidents Act.1 But questions often arise regarding other benefits accruing on death. Thus, it has been held that ex-gratis payments cannot be taken into account in assessing compensation. Even as regards insurance amount, some High Courts make a nice distinction between the insurance amount proper and its "acceleration". Thus, the Bombay view is that the insurance amount is not to be deducted, but the acceleration is to be deducted.2

Then, there is the question of family pension. According to the Karnataka High Court, family pension must be taken into account for deduction, but provident fund or gratuity cannot be taken into account.1

1. Amarjit Kaur v. Vanguard Insurance Company, AIR 1982 Del 1 (reviews cases).

2. Hirji Veerji & Co. v. Sarala, AIR 1982 Born 467 (FB).

3. Deputy General Manager, State Road Transport Corp. v. H. Sarojamma, AIR 1981 Kam 129.

The Fatal Accidents Act, 1855 Back

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