National Insurance Appeal Sets Rs 10L Compensation

Authority: High Court at Calcutta, Appellate Side

Order Date: July 10, 2026

Case Overview

• Parties: Appellant – National Insurance Company Limited; Respondents – heirs of Monjit Singh (wife, son, mother) and injured plaintiff Brihaspati Bar (also referred to as Behaspati Bar).
• Accidents: Both claims arise from a motor accident on 10‑11‑2015 (noted also as 10‑11‑2025 in the initial paragraph) involving vehicle No. WB‑58F‑5663 (Tata Sumo) on Diamond Harbour Road near Khariberia. The offending vehicle allegedly struck a stationary TATA ACE and pedestrians, causing the death of Monjit Singh and severe injuries to Brihaspati Bar, resulting in permanent disability.
• Original Trial Judgments:
• MAC Case No. 34 of 2016 (Award dated 29‑04‑2023): Compensation of Rs 11,52,200 awarded jointly to the three heirs of Monjit Singh, with interest at 6% per annum from filing to realization. Payment to be made by OP‑2 (National Insurance) via account‑payee cheques; any prior compensation under Section 140 MV Act to be deducted.
• MAC Case No. 31 of 2016 (Award dated 11‑07‑2025): Compensation of Rs 13,85,564 awarded to Brihaspati Bar, with interest at 6% per annum from filing to realization, excluding the COVID‑19 pandemic period (March 2020 – December 2021). Payment to be made within 90 days; prior compensation under Section 140 to be deducted.
• Appeals:
• FMA 554 of 2023 – appeal against the Rs 11,52,200 award.
• FMA 262 of 2026 – appeal against the Rs 13,85,564 award.
• Arguments by National Insurance:
• Contended that FIR was lodged against an unknown vehicle; evidence was delayed (seven years) and lacked police statements, rendering the claim doubtful.
• Asserted that the trial court erred in calculating monthly income (Rs 6,000 for the deceased, Rs 7,345 for the injured) and that the compensation amounts were excessive.
• Challenged the disability certificate for Brihaspati Bar, stating it was issued by an individual doctor, not a government medical board, and that the 80% disability rating was unlawful.
• Arguments by Claimants:
• Emphasised that the written statement did not plead vehicle implantation, but eye‑witness testimony and a letter dated 18‑02‑2016 identified vehicle WB‑58F‑5663.
• Asserted that the trial court correctly considered the victims’ occupations and evidence, justifying the awarded amounts.
• Court Findings:
• Police failed to identify the offending vehicle; the claimants relied on eye‑witnesses and documentary evidence.
• The insurer’s investigator was instructed to obtain statements from vehicle owner and driver, which were not produced, indicating a lack of such statements.
• The trial court’s finding of rash and negligent driving by the driver of WB‑58F‑5663 was upheld.
• The trial court’s notional monthly income of Rs 6,000 for the deceased (day‑labourer) was deemed reasonable.
• For Brihaspati Bar, the court held that the claimant was self‑employed, not a labourer; therefore the minimum‑wages rate could not be applied. A revised notional monthly income of Rs 7,000 was adopted.
• Because the disability certificate was not issued by a medical board, the court reduced the disability percentage to 40%.
• Using the revised income (Rs 7,000) and 40% disability, loss of earning capacity was calculated as Rs 7,05,600 (Rs 9,800 × 12 × 15 × 40%). Adding medical expenses (Rs 1,60,000), future medical expenses (Rs 10,000), pain and suffering (Rs 5,000) and loss of amenities (Rs 50,000) yielded a total of Rs 9,80,600, which the court rounded to Rs 10,00,000 as a just and reasonable amount.

Final Outcome

• Appeal FMA 554 of 2023 is dismissed; the judgment and award of Rs 11,52,200 dated 29‑04‑2023 is affirmed. National Insurance must deposit the awarded amount with interest within eight weeks of this order, if not already done.
• Appeal FMA 262 of 2026 is partially allowed: the original award of Rs 13,85,564 is modified to Rs 10,00,000. Interest at 6% per annum applies from the date of filing the claim until realization, excluding the COVID‑19 pandemic period (March 2020 – December 2021). National Insurance Company Limited must deposit Rs 10,00,000 plus the applicable interest with the Registrar General of the High Court, Calcutta, within eight weeks of this order. If the amount has already been deposited, no further payment is required. The claimant may withdraw the amount with accrued interest; any surplus after satisfaction of the award shall be returned to the insurer.
• Both appeals are thus disposed.

Topics: Motor Accident Compensation, Insurance Law