Authority: High Court at Calcutta (Civil Appellate Jurisdiction)

Order Date: 11 September 2026

Case Overview

  • Parties: Appellant – National Insurance Company Ltd.; Respondents – Babla Halder & Ors. (claimants) represented by counsel.
  • The dispute stems from a Motor Accident Claim (MAC) arising from a road accident on 14 December 2022 involving vehicle No. WB‑19L‑1956, which overturned near Ilahipur, Haripal PS, resulting in the death of Tapasi Halder.
  • The Additional District Judge, Fast Track II Court, Diamond Harbour, had awarded the claimants Rs 18,29,940 with interest at 6% per annum and directed payment by the insurer in three equal cheques.
  • The insurer appealed, contending that the victim’s monthly income was understated (Rs 10,000 vs Rs 15,000) and that the compensation should be reduced; the claimants cross‑objected, seeking a higher award.
  • Evidence established that the victim was employed as a manager at Halder Engineering Works, earning Rs 15,000 per month. After deductions and prospective adjustments, the court calculated a dependency loss of Rs 25,20,000 and added Rs 70,000 for loss of consortium, funeral expenses, etc., arriving at a total of Rs 25,90,000; the court rounded the award to Rs 25,00,000 as just and reasonable.
  • The court examined the insurer’s request for liberty to recover the paid amount from the vehicle owner. Citing precedents (National Insurance Co. Ltd. v. Lirasa Bibi, Reliance General Insurance Co. Ltd. v. Niyati Kumar), it held that the insurer may recover after payment, provided it conducts an enquiry, gives notice, and affords the vehicle owner a hearing to determine whether the policy‑condition breach was minor or major.

Final Outcome

  • The original award of Rs 18,29,940 is modified; the respondents are entitled to Rs 25,00,000 compensation.
  • The insurer must deposit the Rs 25 lakh plus interest at 6% per annum from the date of filing the claim until payment, within eight weeks of this order, at the Registrar General, High Court, Calcutta.
  • If payment is delayed beyond the stipulated period, interest will increase to 9% per annum.
  • The insurer is granted liberty to initiate recovery proceedings against the vehicle owner after payment, following the procedure outlined in the cited case law, including issuance of a show‑cause notice and opportunity of hearing.
  • The claimants may withdraw the compensation upon compliance with formalities; the insurer may recover the amount in accordance with the law, keeping all points of law open.

Topics: Motor Accident Compensation, Insurance Recovery, Judicial Modification of Award