The Madras High Court has ruled that an insurance company must compensate the family of a deceased victim, even if the driver involved in the accident was under the influence of alcohol. The decision came in response to an appeal filed for increased compensation for the death of a pedestrian caused by an oncoming vehicle.

Incident Details:

The deceased, identified as Rajasekaran died on December 30, 2017, after being hit by a rashly driven van while walking on Thiruneermalai Main Road, Chennai.

Subsequently, his family initially claimed Rs 65 lakh in compensation, but the Motor Accident Claims Tribunal (MACT) awarded only Rs 27.65 lakh with 7.5% interest, exonerating the insurance company due to the driver's intoxication.

Court's Observations and Verdict:

Justice M Dhandapani referenced a Kerala High Court decision and stated, "Even if the policy document had a condition that driving a vehicle in an intoxicated condition violates the policy terms, the insurance company is still liable to pay the compensation."

In its order, the Madras High Court directed the insurance company to deposit the award amount before the tribunal and recover it from the driver and other respondents.

The court also noted that the deceased, aged 37 at the time of the accident, was earning a daily sum of Rs 700. The tribunal's notional monthly income of Rs 13,700 was considered low, and the court adjusted it to Rs 15,000 while also increasing the amount for loss of estate.

Enhanced Compensation:

In its order, the court raised the total compensation to Rs 30,25,000, with interest at 7.5%. Further, it instructed the insurance company to deposit the enhanced amount within six weeks, which could then be recovered from the respondents.