Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 16 July 2026

Case Overview

  • Appeal No. FAO-5564-2002 filed by appellant Rajbir against respondents Raju Kumar (No.1) and others, including Oriental Insurance Company (No.3).
  • Accident occurred on 08.03.1999 near Shamgarh, police station Butana, when respondent No.1 Raju Kumar was driving car No. HR-02‑E‑1980, owned by respondent No.2 and insured by respondent No.3.
  • Motor Accident Claim Tribunal, Karnal awarded Rs34,000 compensation with 12% interest per annum, citing injuries and 25% disability.
  • Appellant argued compensation was grossly inadequate, seeking enhancement for pain & suffering, medical expenses, loss of income, attendant charges, and permanent disability.
  • Respondent No.3 (Insurance) contended the award was justified.
  • Evidence presented included medical reports showing multiple injuries, fractures, dental loss, 5% permanent physical disability, and 20% visual disability.

Final Outcome

  • Court affirmed Tribunal’s finding of negligence and invalid driver licence.
  • Court recalculated compensation as follows:

1. Pain & sufferings: Rs25,000

2. Affixation of artificial teeth: Rs10,000

3. Loss of income during treatment (3 months @ Rs3,000 per month): Rs9,000

4. Special diet and conveyance: Rs5,000

5. Attendant charges: Rs6,000

6. Loss of income due to permanent disability: Rs35,000

Total revised compensation: Rs90,000

  • Enhanced amount over Tribunal award: Rs56,000.
  • Interest on the enhanced compensation to be paid at 9% per annum from the date of filing of claim petition (07.06.1999) until realization.
  • Oriental Insurance Company directed to pay the entire Rs90,000 (including enhanced amount) to the claimant.
  • Insurance Company may recover the paid amount from the vehicle owner/insured with interest at 6% per annum from the date of deposit till realization, without filing a separate suit.
  • The court ordered the authenticated copy of the award to be emailed to the Insurance Company in accordance with Supreme Court directions in Bajaj Allianz General Insurance Company Versus Union of India (Writ Petition (Civil) No.534 of 2020, decided 16.03.2021).
  • All pending miscellaneous applications, if any, were disposed of.

Topics: Compensation, Motor Accident, Insurance