Authority: High Court at Calcutta
Order Date: 20 August 2026
Case Overview
- Appellants: Urmila Singha & Anr., claimants under Section 163A of the Motor Vehicles Act 1988, seeking compensation for the death of Dipu Singha in a road accident on 01‑05‑2011.
- Respondent: Bajaj Allianz General Insurance Co. Ltd., insurer of the vehicle involved.
- Original award dated 27‑11‑2015 ordered payment of Rs 1,58,250 each to the claimants; appellants challenged, asserting entitlement to Rs 5 lakh under the amended Section 164 of the Motor Vehicles Act.
- Issues considered: statutory compensation under Section 164, liability of insurer versus vehicle owner when a policy condition (driving without a valid permit) is alleged to be breached, and procedural requirements for insurer’s recovery from the vehicle owner.
Final Outcome
- The judgment and award of 27‑11‑2015 is modified; claimants are entitled to Rs 5 lakh compensation from Bajaj Allianz.
- The insurer must deposit Rs 5 lakh plus interest at 6 % per annum from the date of filing the claim until the date of this order, within eight weeks of communication of the order, at the Registrar General, High Court Calcutta.
- Bajaj Allianz is granted liberty to institute recovery proceedings against the vehicle owner after conducting an enquiry and giving the owner an opportunity to be heard, following the procedure laid down in National Insurance Company Ltd. v. Liraza Bibi.
- Deficit court fees are to be paid within one week; the TCR is to be sent by Special Messenger at the appellant’s cost within one week.
- An urgent certified photostat copy of this order will be made available to the parties upon compliance with the requisite formalities.
Topics: Compensation, Motor Insurance