In motor vehicles accident compensation claims entire amount may be disbursed to the claimant if he or she is literate – SC

A.V. Padma & Ors. Vs. R. Venugopal & Ors. (SC)- In motor vehicles accident compensation claims, the entire amount may be disbursed to the claimant if he or she is literate. It is not necessary to deposit it in a bank for the safety of the dependents as some tribunals do. The tribunals often ask the insurance companies to deposit the compensation amount in long-term fixed deposits in the bank so that the money is not wasted and minors and women are not rendered penniless. But this should not be taken as a rigid rule. Such orders are useful to safeguard the interests of minors, illiterate persons and widows, but if the claimant is capable of handling the money, the entire compensation should be given to him or her.

Supreme Court of India

A.V. Padma & Ors.

Vs.

R. Venugopal & Ors.

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