Authority: High Court at Calcutta, Civil Appellate Jurisdiction (Appellate Side)

Order Date: October 08, 2026

Case Overview

  • Parties: Appellant – Magma HDI General Insurance Company Limited; Respondent/Claimant – Sk. Kasem Ali (also referred to as Sk. Kashem).
  • Case Numbers: FMA-1480 of 2024 (appeal); COT 23 of 2025 (cross‑objection); original Motor Accident Claim (MAC) Case No‑29 of 2016 in the City Civil Court, Calcutta.
  • Accident Details: On 27‑06‑2015 at ~13:30 hrs, the claimant was a pedestrian at the garage bus stand, Santragachi (near Kona Expressway). A trailer bearing registration No. WB‑65A‑9059, traveling at high speed in a rash and negligent manner, lost control and struck the claimant’s back, causing severe lethal injuries.
  • Medical Treatment: Hospitalised at Medical College and Hospital, Calcutta from 27‑06‑2015 to 14‑07‑2015; subsequent private treatment; medical expenses incurred amount to Rs 200,000.
  • Trial Court Award (22‑Nov‑2022): Compensation of Rs 42,47,160 with interest at 9% per annum from the filing date of the claim petition (18‑Jan‑2016) until actual payment. Payment to be made by cheque within one month; no order as to costs.
  • Appeal Grounds (Appellant): Alleged error in finding 50% loss of earning capacity without supporting evidence; claim that interest rate of 9% is exorbitant; overall compensation deemed excessive.
  • Cross‑Objection (Claimant): Disputed the quantum of compensation awarded.
  • Legal Precedents Cited:
  • Raj Kumar vs Ajay Kumar (MANU/SC/1018/2010)
  • Uttar Pradesh Road Transport Corporation vs Vibhor Fialok and Anr. (Civil Appeal Nos. 1337‑1338 of 2019, Supreme Court of India)
  • Chanappa Nagappa Muchalagoela vs Divisional Manager, New India Insurance Co. Ltd. (2020(1) TAC‑321(SC))
  • Key Judicial Principles Extracted:

1. Not all injuries result in loss of earning capacity.

2. Percentage of permanent disability is not automatically equal to percentage loss of earning capacity.

3. Medical experts can testify only on permanent disability; loss of earning capacity must be assessed by the tribunal based on overall evidence.

4. Loss of earning capacity varies with profession, age, education, and other factors.

  • Court’s Reasoning: The claimant was engaged in a garment business employing workers; the business does not rely solely on the claimant’s personal physical fitness. No evidence was presented that the business had ceased. While income tax returns show a decline in income, the decline cannot be solely attributed to the disability. However, the claimant’s inability to participate actively may cause some loss of earning capacity. Applying Section 168 of the Motor Vehicles Act, 1988, the Court deemed a compensation of Rs 30 lakh to be just and reasonable.

Final Outcome

  • The original judgment dated 22‑Nov‑2022 is modified.
  • Compensation: Rs 30,00,000 (thirty lakh rupees) payable to the claimant.
  • Interest: 6% per annum from the date of filing the claim (18‑Jan‑2016) up to the date of payment.
  • Payment Directive: Magma HDI General Insurance Company Limited must deposit the Rs 30 lakh plus accrued interest with the Registrar General within eight weeks of communication of this order. If the trial‑court award has already been deposited, no further deposit is required.
  • Claimant’s Right: The claimant may withdraw the compensation after completing necessary formalities; any balance amount, if any, along with accrued interest, shall be returned to the insurer.
  • Administrative Note: An urgent photostat certified copy of this order will be made available to the parties upon compliance with requisite formalities.

Topics: Compensation Modification, Motor Accident Claim