High court rules Karnataka State Road Transport Corporation accident fund, tribunal aid separate

Bengaluru: Karnataka high court has ruled that the compensation paid by state-run Karnataka State Road Transport Corporation (KSRTC) from its accident relief fund cannot be deducted from the compensation awarded by Motor Accident Claims Tribunal.Justice Vijayakumar A Patil made the observation, quashing an order passed by a Mysuru tribunal in a road accident case in Kodagu district in which a woman passenger, identified as Shanthi, died in Feb 2018. Drivers of both KSRTC buses died in the head-on collision. Shanthi's husband Ramappa and son Roopith approached the tribunal, seeking Rs 11.5 lakh compensation. KSRTC, in the meantime, paid Rs 3 lakh to the family. On Nov 30, 2019, the tribunal awarded Rs 3.4 lakh. As KSRTC had already given Rs 3 lakh, the tribunal said the same must be deducted, leaving the family with Rs 40,000 in relief.After the family challenged the verdict, the high court pointed out that Shanthi had paid Re 1 as contribution (embedded in ticket fare) to KSRTC's fund set up for accident victims. When a person pays a statutory levy, an independent statutory contract comes into existence between the person and the state, the court noted.This confers financial benefits upon legal heirs of deceased passengers. "To allow deduction of this amount will be against public policy," the court said.Besides, the court directed KSRTC to pay an increased compensation to Rs 6.2 lakh with a 6% interest, pegging the deceased woman's notional monthly income at Rs 12,500 as per the chart of Karnataka State Legal Services Authority. It held the tribunal's assessment of the woman's monthly income of Rs 7,000 was on the lower side.