Authority: High Court of Jammu & Kashmir and Ladakh at Jammu

Order Date: 18.09.2026

Case Overview

  • Parties: Oriental Insurance Co. Ltd (appellant insurer) vs. Ghulam Nabi Naik & others, Haneefa Begum & others (dependents of deceased).
  • Origin: Two claim petitions (No. 45 and No. 46) before Motor Accidents Claims Tribunal, Ramban, arising from a single road‑traffic accident on 28.06.2014.
  • Accident details: Motorcycle (JK02AH 0139) traveling from Ramban to Dharamkund collided near Sharoor, Kanga, with a speeding tipper (JK14B 7164) coming opposite. Both occupants – Jhangir Alam (21 yrs) and Fayaz Ahmed Naik (22 yrs) – died. FIR No. 8/2014 registered under sections 279 & 304‑A IPC; charge sheet filed against tipper driver.
  • Claimants: Dependents of Jhangir Alam (mother & sister) and dependents of Fayaz Ahmed Naik (parents) sought compensation.
  • Original Tribunal awards:
  • Claim 45 (Jhangir Alam) – Income ₹10,000/month, multiplier 16, loss of dependency ₹13,44,200, plus ₹15,000 loss of estate and ₹15,000 funeral expenses, total ₹13,74,200.
  • Claim 46 (Fayaz Ahmed Naik) – Income ₹12,000/month, multiplier 16, loss of dependency ₹16,12,800, plus ₹15,000 loss of estate and ₹15,000 funeral expenses, total ₹16,42,800.
  • Appellant’s challenge: Asserted deceased were non‑earning, income figures unsupported; sought assessment on basis of minimum wages.

Court Findings & Reasoning

  • Evidence on income was unsubstantiated; tribunal could not rely on claimed incomes of ₹10,000 and ₹12,000 per month.
  • For Jhangir Alam (claim 45): Minimum wage for unskilled labour (effective 01.01.2013) = ₹150/day → ₹4,500/month. Adding 40% future prospects (per National Insurance Co. Ltd v Pranay Sethi), monthly income = ₹6,300. After 50% deduction for personal/living expenses, loss of dependency per month = ₹3,150. Multiplier for age 21‑25 = 18. Loss of dependency = ₹6,80,400. Add ₹15,000 loss of estate, ₹15,000 funeral expenses, and ₹40,000 filial consortium per claimant. Total compensation = ₹7,90,400.
  • For Fayaz Ahmed Naik (claim 46): Minimum wage for skilled worker = ₹225/day → ₹6,750/month. Adding 40% future prospects → ₹9,450/month. After 50% personal expense deduction, loss of dependency per month = ₹4,725. Multiplier 18 → loss of dependency = ₹10,20,600. Add ₹15,000 loss of estate, ₹15,000 funeral expenses, and ₹40,000 filial consortium each. Total compensation = ₹11,30,600.
  • The court held the tribunal’s income assumptions unsupported and substituted statutory minimum‑wage based calculations.
  • Interest at 7.5% awarded by tribunal remains unchanged.
  • Excess amount, if any, deposited by Oriental Insurance to be released in its favour.

Final Outcome

  • Appeals allowed; original awards modified to ₹7,90,400 for claim 45 and ₹11,30,600 for claim 46.
  • Oriental Insurance’s liability limited to these revised amounts; any excess payment to be returned.
  • Interest at 7.5% continues; other terms of the tribunal award remain intact.

Topics: Motor Accident Compensation, Insurance Liability