MUMBAI: In one of the highest compensation amounts awarded in recent times, the Motor Accident Claims Tribunal has ordered an insurance company to pay a total compensation of around Rs 1 crore (including interest) to the family of a 48-year-old BMC ambulance driver who died after a speeding 18-year-old biker, riding without a licence, rammed into him while he was crossing the road at Nagpada in 2013. The victim, Ramchandra Zore, earned a monthly salary of Rs 68,000 at the time of his death.

The tribunal found that the bike owner, Khublal Prajapati, had allowed Mohammed Ashraf Qureshi to use the bike despite being aware he did not have a licence. The tribunal held this was a breach of the insurance policy’s conditions and, hence, it was exonerating the insurance company from the liability.

However, applying the principle of “pay and recover”, the tribunal directed Oriental Insurance Company Ltd to hand over the money to Zore’s wife and two minor children and said it was at liberty to recover the amount from the bike owner. “The insurer is at liberty to recover the paid compensation amount from the opposite party without filing a separate suit, by initiating a proceeding before the executing tribunal if the dispute is between insurer and opposite party (Prajapati),” the tribunal said.

The claim was submitted by Zore’s wife Pranali (42) and his children aged 10 and 5 years.

On March 27, 2013, Zore suffered head injuries and died in hospital on April 5. An FIR was registered against the biker, Qureshi, and he was booked for causing death by negligence.

The tribunal referred to documents such as the FIR, panchnama, death certificate and post mortem report and said all the documents pointed to the accident occurring due to the biker’s fault.

While calculating the compensation amount, the tribunal considered several factors including age of the victim, his salary at the time his death, future earning prospects, loss of consortium (in the case of the spouse) and funeral expenses.

The tribunal calculated the compensation amount to be Rs 75.60 lakh and also levied an annual interest of 7.5% from October 7, 2013, the date the complaint was registered.

The tribunal directed that the victim’s wife should be given Rs 37.60 lakh along with the interest and the children should each be given Rs 18.75 lakh with interest. It also said that the children’s compensation should be invested in fixed deposits in a nationalized bank until each became a major.

