Compensation Cut to Rs 45 Lakh for Ajay Dey

Authority: Calcutta High Court, Civil Appellate Jurisdiction

Order Date: 15 October 2026

Parties: Appellant – The New India Assurance Company Ltd.; Respondent/Claimant – Sri Ajay Dey.
Background: On 23‑10‑2017, vehicle No. WB‑19D‑6344 struck the claimant near Kalitala More, causing compound fractures of the left arm and leg and permanent disablement. A claim was filed under Section 166 of the Motor Vehicles Act, 1988.
Trial Court Decision: The Additional District Judge, Fast Track Court, Alipore (21‑09‑2023) awarded Rs 47,84,242 with interest at 7% p.a. and directed payment within 60 days.
Appeal Grounds: The insurer contended that the FIR was lodged 3½ months after the accident, alleged inconsistencies in statements, questioned the claimant’s medical expense documentation, and argued the compensation was excessive. The claimant cross‑objected, seeking enhancement of the award.
Evidence Considered: FIR (lodged by the wife of another injured person), testimonies of PW‑1 and PW‑6 establishing rash and negligent driving, Medical Board report confirming the extent of disability, and salary/pay‑slip evidence showing the claimant’s post‑accident salary increase.

The appellate court held that the delay in filing the FIR was not fatal and affirmed the insurer’s liability.
Compensation was reduced to Rs 45,00,000 (Rupees Forty‑Five Lakhs).
Interest was fixed at 6% per annum from the date of filing the claim.
The New India Assurance Company Ltd. must deposit Rs 45 lakh with interest within eight weeks of this order; if the trial‑court award has already been paid, no further deposit is required.
Any excess amount deposited shall be returned to the insurer after the claimant withdraws the compensation upon compliance with the necessary formalities.
The order supersedes the judgment dated 21‑09‑2023 to the extent of the modification.

Topics: Motor Accident Compensation, Insurance Law