Authority: High Court at Calcutta

Order Date: 15 October 2026

Case Overview

  • Parties: Appellants/claimants Shekhar Sahoo & Ors. (including Tapati Sahoo) vs. The National Insurance Company Ltd. (respondent) and others.
  • The dispute arose from a motor vehicle accident on 12 September 2021 where the victim Soumendu Sahoo was struck by a truck (WB‑29/8153) while riding a motorcycle (WB‑30AH/3182), resulting in his death.
  • The claim was filed under Section 166 of the Motor Vehicles Act, 1988. The trial court (Additional District Judge, Fast Track, 1st Court, Tamluk) awarded Rs 60,500 to Shekhar Sahoo and Rs 7,40,900 to Tapati Sahoo (total Rs 8,01,400) based on a notional monthly income of Rs 4,500.
  • The appellants appealed, arguing that the victim’s actual monthly income should be Rs 14,000 as a technical employee, citing evidence of PW‑3 (the victim’s employer). The insurance company contended that the employer’s certificate was not specific and the notional income was appropriate.
  • The High Court examined PW‑3’s testimony, found it non‑specific regarding employment period and attendance records, and therefore could not accept Rs 14,000. However, considering the victim’s technical education, age, and family size, the Court fixed a monthly income of Rs 8,000.

Final Outcome

  • Using the revised monthly income of Rs 8,000, the Court added a 40 % future prospect (Rs 3,200) to obtain a net monthly income of Rs 11,200, leading to an annual dependency loss of Rs 1,34,400.
  • Applying a multiplier of 18, the total dependency loss was calculated as Rs 24,19,200; after a 50 % deduction for personal expenses, the net dependency loss is Rs 12,09,600.
  • Adding general damages for loss of consortium, loss of estate, and funeral expenses of Rs 1,21,000, the total compensation amounts to Rs 13,30,600, which the Court rounded to Rs 13,00,000 as just and reasonable.
  • The National Insurance Company Ltd. is directed to deposit Rs 13,00,000 with interest at 6 % per annum from the date of filing of the claim case until payment, within eight weeks of this order. The amount may be withdrawn by the claimants after completing necessary formalities.

Topics: Motor Accident Compensation, Insurance Liability