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

Order Date: 21-08-2026

Case Overview

  • Parties: The Oriental Insurance Company Limited (Petitioner) vs. Smt. Sita Devi (Respondent).
  • Proceedings: Appeal against the order dated 02.05.2014 passed by the Motor Accident Claims Tribunal, Chamoli (Gopeshwar) in M.A.C. No. 25 of 2012, which awarded a compensation sum of ₹4,41,500 to the claimant.
  • Key Issue: The Tribunal applied a multiplier of 18 while calculating compensation for a deceased aged 27 years, whereas the Supreme Court precedent in Sarla Verma (Smt.) and Others v. Delhi Transport Corporation and Another mandates a multiplier of 17 for that age group.
  • Court’s Reasoning: The Court examined the record, confirmed the deceased’s age as approximately 27 years, and held that the correct multiplier is 17. Consequently, the Tribunal’s application of 18 was erroneous.
  • Recalculation: Compensation under the head of loss of earnings is recomputed as ₹24,000 × 17 = ₹4,08,000. All other components of the original award, including interest and additional directions, remain unchanged.
  • Deposit Instructions: The claimant has already withdrawn 50% of the awarded amount. The balance, as recalculated, must be deposited by the appellant (The Oriental Insurance Company Limited) before the Motor Accident Claims Tribunal within four weeks from the date of this order.
  • Disbursement: The Tribunal shall thereafter release/disburse the deposited amount to the claimant in accordance with law.
  • Disposition: The appeal is disposed of.

Final Outcome

  • The 2014 Tribunal award is modified to reflect a multiplier of 17, reducing the compensation to ₹4,08,000.
  • The insurer is directed to deposit the revised balance within four weeks; the Tribunal will disburse the amount to the claimant.
  • All other award components, interest, and directions remain unchanged.

Topics: Compensation, Motor Accident Claims, Insurance