Authority: High Court of Chhattisgarh at Bilaspur
Order Date: 06.07.2026
Case Overview
- Parties: Claimants – Smt. Gulab Verma, her children Ku. Prachi Verma (9 yrs) and Priyanshu Verma (3 yrs), and Smt. Indra Bai Verma; Driver – Kundan Lal Dheevar Nayak; Owner – Kamaldev Chandrakar; Insurer – Bajaj Allianz General Insurance Company Limited.
- Two appeals were before the Court:
1. MAC No.162/2020 filed by the claimants under Section 173 of the Motor Vehicles Act, 1988 seeking enhancement of the compensation awarded by the 5th Additional Motor Accident Claims Tribunal, Raipur (Award dated 05.09.2019, Rs 14,08,000/-).
2. MAC No.2252/2019 filed by Bajaj Allianz challenging the same award and the fastening of liability on the insurer.
- The Tribunal had awarded compensation of Rs 14,08,000/- including interest for the death of Gajadhar Verma, with liability to be borne severally or jointly by the non‑applicants.
- The insurer argued that the Tribunal erred in fastening liability on it; the claimants argued the award was insufficient, citing the deceased’s actual monthly earnings of Rs 60,000/- and the omission of loss of estate and proper consortium amounts.
- The Court noted that the Tribunal ignored the deceased’s Income Tax Returns for AY 2011‑12, 2012‑13, and 2013‑14, which showed a gross annual income of Rs 2,62,445/- and other sources of Rs 94,800/-. The Tribunal’s assessment of a monthly income of Rs 7,000/- was therefore unsustainable.
- The Court referred to Supreme Court judgments: National Insurance Company Ltd. v. Pranay Sethi (2017), Sarla Verma & Ors. v. Delhi Transport Corporation (2009), and Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram & Ors (2018) for principles on compensation computation.
- Using the Tribunal’s heads of loss and the income tax data, the Court computed compensation as follows:
1. Annual Income: Rs 7,000 × 12 = Rs 84,000; Court‑determined income = Rs 2,62,445 + Rs 94,800 = Rs 3,57,245.
2. Net Income: Rs 3,57,245 – Rs 44,548 = Rs 3,12,697.
3. Future Prospect (+40%): Rs 84,000 × 40% = Rs 33,600; Rs 3,12,697 × 40% = Rs 1,25,079.
4. Yearly Income: Rs 1,17,600 (Rs 84,000 + Rs 33,600) and Rs 4,37,776 (Rs 3,12,697 + Rs 1,25,079).
5. Deductions (¼): Rs 29,400 from first head (total Rs 88,200) and Rs 1,09,444 from second head (total Rs 3,28,332).
6. Multiplier (×15): Rs 13,23,000 and Rs 49,24,980 respectively.
7. Loss of Estate: Rs 30,000 (Tribunal) vs Rs 20,000 (Court).
8. Loss of Consortium: Rs 40,000 (Tribunal) vs Rs 1,60,000 (Court – 4×).
9. Funeral Expenses: Rs 15,000 (Tribunal) vs Rs 20,000 (Court).
10. Total Compensation: Tribunal award Rs 14,08,000/-; Court‑enhanced award Rs 51,24,980/-.
- The Court therefore ordered the additional amount of Rs 37,16,980/- to be paid, with interest at 7% per annum from the date of filing of the claim before the Tribunal until realization.
- The insurer’s appeal (MAC No.2252/2019) was dismissed, following the earlier dismissal of a similar appeal (MA(C) No.1440/2018) on 28.02.2026.
- The claimants’ appeal (MAC No.162/2020) was allowed in part; the impugned award was modified as above.
- The respondent (insurer) is directed to deposit the enhanced compensation within three months of receipt of the copy of this order.
Final Outcome
- Bajaj Allianz’s appeal (MAC No.2252/2019) is dismissed.
- Compensation for the Verma family is enhanced from Rs 14.08 lakh to Rs 51.24 lakh, requiring payment of an additional Rs 37.16 lakh with 7% annual interest, payable within three months.
Topics: Compensation, Motor Accident Claims