Authority: High Court of Jharkhand at Ranchi

Order Date: 03 September 2026

Case Overview

  • Appellant: Chola Mandalam MS General Insurance Co. Ltd., represented by Deputy Manager Vishal Kumar Sharma and counsel Ashutosh Anand.
  • Respondents: Claimants Nisha Devi (mother and natural guardian of minors), Kavya, Divya, Shusant, Rishabh Choudhary (minors), Pratima Devi, Nitesh Kumar Choudhary, Tata AIG General Insurance Co. Ltd., and Ranju Devi; represented by counsel Amaresh Kumar and Ms. Riya Raj.
  • The dispute stems from Motor Accident Claim Case No. 196 of 2022 concerning a collision on 31 May 2022 between trailer JH‑05BK‑4041 (driven by the deceased Mukesh Kumar Choudhary) and trailer NL‑01AD‑5697 (insured by the appellant). The deceased died at Banshagar Hospital.
  • The Claims Tribunal, Jamshedpur, awarded compensation of Rs 22,16,475 with interest at 7.5% per annum from 30 September 2022. The insurer appealed, alleging the deceased lacked a valid licence and that contributory negligence should be attributed.

Findings

  • The court held the insurer’s defence of unlicensed driving was not pleaded before the Tribunal and therefore could not be raised on appeal.
  • No evidence was found to establish contributory negligence by the deceased; the FIR and charge‑sheet implicated the driver of trailer NL‑01AD‑5697.
  • Income of the deceased was reassessed. Oral evidence claimed Rs 1,500 per day (≈Rs 45,000 per month) but lacked documentary support. The court set monthly income at Rs 16,000, higher than the minimum wage of Rs 11,997 but lower than the claim.
  • Using a multiplier of 14, adding 25% for future prospects, and deducting one‑fourth for personal expenses (six dependants), loss of dependency was calculated as Rs 25,20,000.
  • Consortium compensation of Rs 44,000 per claimant (six claimants) totals Rs 2,64,000. Funeral and loss of estate each Rs 16,500 per claimant.
  • Total compensation recomputed to Rs 28,17,000. Interest at 7.5% per annum from 30 September 2022 remains unchanged.
  • The court rejected the insurer’s objection that enhancement requires a cross‑appeal, citing Surekha v. Santosh (2021) which allows enhancement in continuation of proceedings.
  • All other findings of the Tribunal, including liability of the insurer, were upheld.

Final Outcome

  • Appeal dismissed.
  • Compensation enhanced from Rs 22,16,475 to Rs 28,17,000, with interest at 7.5% per annum from 30 September 2022.
  • Insurer to deposit the enhanced amount within eight weeks, adjusting any prior deposits; claimants to furnish bank details; minor children’s share directions apply mutatis‑mutandis.
  • No order as to costs.

Topics: Compensation, Motor Accident Claim, Insurance Liability