The Karnataka High Court has delivered a significant verdict regarding the LPG tanker disaster that occurred in Dakshina Kannada district 12 years ago, where 13 lives were tragically lost.
The court has ruled that the additional compensation announced by the state government for the victims’ families must not be deducted from the insurance payouts provided by the insurance companies.
The case stems from a tragic accident that occurred on April 9, 2013, near Perne village on the Mangalore-Bantwal highway, when an LPG tanker overturned, causing a massive gas leak, explosion, and fire.
The incident claimed the lives of 13 people and left several others injured. It also caused extensive damage to buildings and vehicles in the vicinity. The tanker was owned by Hindustan Petroleum Corporation Limited (HPCL), and the company, along with the state government, provided various compensations to the victims’ families.
However, the National Insurance Company, which insured the LPG tanker, had requested the court to allow them to deduct the government’s ex-gratia (additional compensation) from the insurance payout to the families of the victims. The insurance company argued that since the government had already paid ex-gratia to the families, the amount should be subtracted from the total insurance claim.
The High Court, however, rejected this plea, ruling that the state government’s ex-gratia payment was part of a social security scheme and aimed at compensating the victims for income loss, and thus should not be deducted from the insurance amount. The court also made it clear that the ex-gratia was unrelated to the insurance payout and must be treated separately.
The ruling was issued by Justice P. Shreesudha, who dismissed the appeal filed by the National Insurance Company. The court also clarified that the compensation provided by HPCL and the state government was not subject to deductions from the insurance payout. Furthermore, the court instructed the insurance companies to deposit the full compensation amount, along with interest, to the victims’ families.
In response to the ruling, HPCL and the state government welcomed the decision, stating that the compensation process for the victims would now proceed without further delays. The victims’ families, who have been waiting for justice and proper compensation for years, expressed relief and gratitude after the verdict.
The LPG tanker explosion remains one of the deadliest accidents in the region, and this judgment serves as an important legal precedent in ensuring that victims of such disasters receive the full compensation they are entitled to, without deductions or delays.
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