Reliance General Insurance Appeal Dismissed, Rs21.74 L Compensation

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

Order Date: 18 September 2026

Parties: Appellant – Reliance General Insurance Co. Ltd (registered office Mumbai, branch Guwahati). Respondents – Begum Jyotshna Hoque and five relatives (parents and brothers of the deceased Samadul Alam Hoque). The same family also filed a cross‑objection.
Nature of proceeding: Appeal under Section 173 of the Motor Vehicles Act, 1988 against the Motor Accident Claims Tribunal (MACT), Golaghat judgment dated 01‑Nov‑2021 in MAC Case No. 25/2014.
Accident details: Occurred on 30‑Sep‑2013 near Universal Oil Depot, NH‑37, Dergaon Police Station. An oil‑tanker (Reg. No. NL‑01/D‑7377) collided head‑on with a motorcycle (Reg. No. AS03/F‑9108) ridden by the deceased.
Original award: MACT granted total compensation of Rs 21,27,792 with interest at 6% per annum from the date of filing the claim petition till realization.
Issues raised on appeal: 1) Claim of contributory negligence of the deceased; 2) Allocation of liability 50:50; 3) Assessment of deceased’s income (use latest ITR of 2012‑13 Rs 1,81,700 instead of average); 4) Enhancement of loss of estate and funeral expenses (Rs 15,000 each to Rs 16,500); 5) Inclusion of filial consortium; 6) Increase of interest rate from 6% to 9% and award of interest on future prospects.

The court examined the accident report, FIR, charge‑sheet, and witness statements (CW‑1 and CW‑2). It found that the oil‑tanker was driven at excessive speed and on the wrong side, while the deceased rode on his own side. No evidence was produced to establish contributory negligence by the deceased; the appellant’s claim was deemed presumptive.
Regarding income assessment, the tribunal’s method of averaging the two assessed years (Rs 1,66,500 per annum) was upheld as reasonable, citing ICIC Lombard General Insurance v. Ajay Kumar Monhanty.
The court recognized the right to compensation for loss of filial consortium to the mother, relying on Magma General Insurance v. Nanu Ram and United India Insurance v. Satinder Kaur.
On interest, the court noted recent Supreme Court guidance that interest on future prospects is permissible and fixed a rate of 7.5% per annum as fair and justified.

The appeal by Reliance General Insurance Ltd is dismissed.
The cross‑objection is partially allowed and the compensation is revised as follows:
Monthly income of the deceased: Rs 13,875 per month.
Future prospect (40%): Rs 13,875 + … (calculations lead to total compensation of Rs 21,74,782).
Loss of estate: Rs 16,500 (10% enhancement).
Funeral expenses: Rs 16,500 (10% enhancement).
Filial consortium: Rs 44,000 (10% enhancement).
Total revised compensation: Rs 21,74,782 with simple interest at 7.5% p.a. from filing of the claim till realization.
The insurer is directed to deposit the above amount after deducting Rs 10,63,896 already withdrawn by the claimants, within six weeks of the judgment, before the Registry.
The trial court records are to be returned promptly.

Topics: Motor Accident Compensation, Court Judgment