Authority: Uttarakhand High Court, Hon'ble Alok Mahra, J.

Order Date: 11-09-2026

Case Overview

  • Parties: The Oriental Insurance Company Limited (Petitioner) vs. Smt. Basu Devi and Others (Respondents).
  • Procedural History: This appeal challenges the order and award dated 24.03.2014 passed by the Motor Accident Claims Tribunal/District Judge, Tehri Garhwal, in M.A.C. No. 18 of 2013, which granted the claimants a total compensation of Rs.3,25,000.
  • Claims Details: The original award comprised Rs.2,00,000 for loss of income, Rs.1,00,000 for loss of consortium, and Rs.25,000 for funeral expenses.
  • Legal Issues: Whether the accident falls under a third‑party claim and whether the claim is covered under the Personal Accident Insurance Scheme, which caps liability at Rs.2,00,000.
  • Counsel Submissions: Learned counsel for the appellant argued that the accident involved no other vehicle, thus not a third‑party claim, and that the deceased was covered under a Personal Accident Insurance Scheme with a maximum liability of Rs.2,00,000. The counsel also cited the Apex Court judgment in National Insurance Company Limited vs. Ashalata Bhowmik and Others (2018) 9 SCC 801.
  • Court Findings: The Court found that the accident did not involve any other vehicle and the claim was indeed covered under the Personal Accident Insurance Scheme. Consequently, the maximum liability of the insurer is restricted to Rs.2,00,000. The Tribunal could not lawfully award amounts exceeding this policy limit.

Final Outcome

  • The judgment and award dated 24.03.2014 are modified to limit the total compensation to Rs.2,00,000 only.
  • The appeal is disposed of in these terms, and the Oriental Insurance Company Limited is ordered to pay the claimants Rs.2,00,000.

Topics: Insurance Claim, Court Judgment