Authority: Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)

Order Date: 13.11.2026

Case Overview

  • Parties: Appellants – Mrs. Sakiana Bibi and her son (w/o MD. Bhaber Ali), parents of the deceased Siraj Daula; Respondents – Oriental Insurance Company Ltd, United India Insurance Co. Ltd, driver Loken Nath, and others.
  • Nature of dispute: Appeal under Section 173 of the Motor Vehicles Act, 1988 against a Motor Accident Claim Tribunal (MACT) award dated 10.05.2016.
  • Accident facts: On 01.01.2014 at ~1:40 PM, Siraj Daula was a pillion rider on motorcycle AS‑16/D‑0231 on NH‑31; a tractor AS‑17/B‑2866 struck the bike, causing grievous injuries. Siraj died on 06.01.2014; the motorcyclist survived with serious injuries.
  • Original MACT award: Multiplier 11 (based on mother’s age 51), monthly income deemed Rs 3,000 (no proof), total compensation Rs 3,88,112 plus 6% interest, awarded against driver Loken Nath. No compensation for “Love and Affection”, loss of estate, or loss of consortium.
  • Grounds of appeal: Inadequate medical expense award (actual Rs 1,00,000 vs. Rs 66,112 awarded), omission of statutory heads, incorrect multiplier (should be based on deceased’s age 29, i.e., 17), wrong interest rate (6% vs. 9% per Supreme Court precedents), and liability incorrectly placed on tractor owner instead of insurer.
  • Counsel submissions: Appellants argued for enhanced compensation; respondents contended medical bills were correctly proved and cited Supreme Court decision in National Insurance Co. Ltd v. Pranay Sethi.
  • Tribunal errors identified: Wrong multiplier, omission of funeral expenses, loss of estate (Rs 15,000 + 10% every 3 years), loss of consortium (Rs 40,000 per head + 10% every 3 years), and use of 50% future income instead of 40%.

Final Outcome

  • The Court recalculated compensation as follows:
  • Monthly income: Rs 3,000
  • Future prospect (40%): Rs 1,200
  • Yearly income (i + ii) × 12: Rs 50,400
  • Deduction 50% (deceased bachelor): Rs 25,200
  • Compensation (v) = Rs 25,200 × multiplier 17 = Rs 4,28,400
  • Funeral expenses: Rs 15,000 + 10% = Rs 19,500
  • Medical expenses: Rs 66,112
  • Loss of estate: Rs 15,000 + 10% = Rs 19,500
  • Loss of consortium: Rs 40,000 × 2 = Rs 80,000 + 10% every 3 years (post‑2017) = Rs 24,000; total Rs 1,04,000
  • Total compensation: Rs 6,37,512
  • Interest: Court directs simple interest at 9% per annum from the date of filing of the claim petition (or from claim filing to award date, as the award originally placed liability on the owner).
  • Payment order: Oriental Insurance Company Ltd must deposit the total amount (Rs 6,37,512 plus applicable interest) in the Court Registry or before the MACT, Kokrajhar, within 45 days of this order. The amount will be released to the claimants upon identification by their counsel.
  • The appeal is allowed; records are sent back.

Topics: Motor Accident Compensation, Insurance Liability