COMPENSATION TO FAMILY

The Supreme Court (SC) has modified the compensation awarded by the Delhi high court in a road accident because of higher deduction in calculation the loss of income. In this case, baby Radhika vs. Oriental Insurance Co., the earning member died at 32, and his annual income was nearly Rs 2 lakh. The tribunal awarded Rs 45 lakh, but reduced by the high court to Rs 5.8 lakh. The high court deducted two-thirds of the income as expenses of the deceased, though normally it was one-third. The SC agreed with the one-third formula.