Authority: Gauhati High Court (Kohima Bench)

Order Date: 24 July 2026

Case Overview

  • Petitioners: Lakhimai Borah Saikia (widow) and five children, residents of Bhalaimora, Lakhimpur, Assam.
  • Respondents: Oriental Insurance Co. Ltd (Branch Manager, Guwahati) and its Divisional Manager, Dimapur, Nagaland.
  • Appeal filed under Section 173 of the Motor Vehicles Act, 1988 against the award dated 14 June 2024 passed by the Motor Accident Claims Tribunal (MACT), Phek, Nagaland in MAC Case No.01/2023.
  • Accident details: On 16 November 2022, the deceased – a fortune‑teller/astrologer – was riding his motorbike when Tata truck No. NL/01‑AG‑0060, driven rashly, collided with and ran over him, causing death at the scene.
  • MACT award: Rs 17,27,500, directed insurer to deposit within three months (instead of the statutory 30 days), accepted monthly income of Rs 35,000, and gave a lump‑sum loss of consortium of Rs 40,000.

Grounds of Appeal

1. Violation of Section 168(3) – award should be payable within 30 days, not three months.

2. Tribunal ignored un‑rebutted evidence of monthly income Rs 1,20,000 and bank/insurance documents showing substantial savings.

3. Failure to apply the 10 % enhancement on conventional heads as mandated in National Insurance Co. Ltd. v. Pranay Sethi (2017) 16 SCC 680.

4. Incorrect lump‑sum loss of consortium; Supreme Court precedent (Pranay Sethi, Satinder Kaur) requires separate spousal and parental consortium.

Court’s Analysis

  • Recognised that absence of Income Tax Returns does not preclude acceptance of income where bank statements, recurring deposit statements (Rs 50‑60 k/month) and LIC policies demonstrate earnings.
  • Adopted a realistic assessment: monthly income of the deceased set at Rs 80,000.
  • Applied Supreme Court guidance on loss of consortium: Rs 40,000 to the widow and Rs 40,000 each to the five children.
  • Considered a 5 % loss of future prospects on a notional earnings base of Rs 36,00,000, yielding Rs 1,80,000.
  • Calculated loss of estate as one‑quarter of Rs 12,00,000 and funeral expenses of Rs 15,000 each, as reflected in the tribunal’s table.

Modified Award

| Head | Amount (Rs) |

| Loss of income (Rs 80,000 × 12 months × 12 years) | Rs 12,00,000 |

| Loss of estate (1/4th) | Rs 12,00,000 |

| Funeral expenses | Rs 15,000 |

| Spousal consortium | Rs 40,000 |

| Parental consortium (5 × Rs 40,000) | Rs 2,00,000 |

| 5 % loss of future prospects | Rs 1,80,000 |

| Total | Rs 40,50,000 |

Final Outcome

  • The original award of Rs 17,27,500 is set aside and replaced by Rs 40,50,000.
  • Oriental Insurance Co. Ltd must pay the enhanced amount with interest at 9 % per annum from the date of filing the claim before the Tribunal until realization.
  • Payment to be deposited with the Tribunal within 60 days of receipt of this judgment.
  • The Registry is directed to forward the trial court records expeditiously.

Topics: Compensation Law, Insurance Liability, Motor Accident Claims