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

Order Date: 11 August 2026

Case Overview

  • Parties: Appellants/claimants – Smt. Santi Roy, Ashish Kumar Roy, Saswati Roy; Respondents – National Insurance Company Ltd and Bajaj Allianz General Insurance Co. Ltd.
  • Original accident occurred on 15 September 2008 at approximately 5:30 a.m. when a motorcycle (WB‑01‑T‑3033) carrying Shyamal Kumar Roy and his wife Anjali Roy was struck by truck WB‑15A‑5233 at the intersection of Aurobindo Sarani and RD Street, resulting in both victims being declared dead at R.G. Kar Hospital.
  • The trial court (Additional District Judge, 3rd Court, Balurghat) awarded Rs 11,16,676 to the claimants, directing the two insurers to pay equal shares within two months, with simple interest of 9% p.a. on delay.
  • The claimants appealed (FMA‑2216/2016) alleging errors in the calculation of monthly salary (Rs 10,714 vs. Rs 10,694), omission of a 30% future prospect, and undervaluation of general damages (Rs 4,500 instead of Rs 84,000).
  • Bajaj Allianz appealed (FMAT‑931/2014) contesting the trial court’s refusal to allow recovery of its share from the vehicle owner (WB‑31‑2876) after the owner’s cheque was dishonoured.
  • The Court examined the evidence, recalculated compensation using the corrected monthly income of Rs 10,714, added a 30% future prospect, applied a 1/3 personal‑expense deduction, used a multiplier of 13, and added general damages of Rs 70,000, arriving at a computed total of Rs 15,18,532.80.
  • The Court deemed Rs 15,00,000 to be “just and reasonable” and ordered each insurer to pay Rs 7,50,000 to the claimants, with interest at 6% per annum from the date of filing of the claim case till the date of payment.

Legal Precedent on Insurer’s Right to Recover

  • The Court referenced multiple Supreme Court judgments (e.g., Sova Dey vs National Insurance, Oriental Insurance vs Inderjit Kaur, United India Insurance vs Laxmamma, National Insurance vs Balkar Ram) establishing that an insurer remains liable to satisfy third‑party awards even if the premium cheque is dishonoured, provided the cancellation notice is communicated after the accident.
  • Accordingly, the Court held that the insurer’s attempt to recover from the vehicle owner could not extinguish its liability to the third‑party claimants.
  • The Court permitted Bajaj Allianz to conduct an enquiry against the vehicle owner, granting the owner an opportunity to be heard, but emphasized that any recovery proceedings must follow applicable law.

Final Outcome

  • The appeals (FMA‑2216/2016 and FMAT‑931/2014) are dismissed; the original judgment and award dated 11 April 2014 are modified as follows:
  • Each insurer (National Insurance Company Ltd and Bajaj Allianz General Insurance Co. Ltd) must pay Rs 7,50,000 to the claimants.
  • Interest at 6% per annum accrues from the date of filing of the claim case until full payment.
  • Payment must be deposited with the Registrar General, High Court Calcutta, within eight weeks of the order’s communication.
  • Upon deposit, claimants may withdraw the compensation after completing necessary formalities.
  • The Court rejected the trial judge’s finding that the cheque dishonour was proved, noting the lack of detailed reasons, and therefore did not sustain any limitation on the insurers’ liability.
  • The order also directs that a certified copy of the order be made available to the parties upon compliance with formalities.

Topics: Compensation, Motor Accident Liability