Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: July 08, 2026

Case Overview

  • Appellants: Shoba and her son (wife and son of the deceased coolie) and respondent No.3 (the deceased’s mother).
  • Respondent: The Oriental Insurance Company Ltd.
  • Accident occurred on 26‑05‑2017; the coolie died on 07‑06‑2017 while still under inpatient treatment.
  • The Tribunal originally awarded a total compensation of Rs 23,68,000, apportioned between the appellants and respondent No.3, with interest at 9%.
  • Both the insurer and the claimants appealed to the High Court; the insurer contested liability, the claimants sought enhancement.
  • The High Court upheld the quantum of compensation as “perfect,” rejected the insurer’s liability contentions, and reduced the interest rate from 9% to 6%.
  • Appellants argued that (i) the income figure of Rs 11,000 adopted was inadequate, (ii) the reduction of interest was improper, and (iii) no medical expenses were awarded.
  • The insurer contended that the income of Rs 11,000 was appropriate, no medical expense evidence was produced, and the 6% interest reflected prevailing bank rates.
  • The Court found no basis to increase the income figure; the salary certificate for Rs 60,000 was unsubstantiated, and Rs 11,000 is appropriate for a labourer in 2017.
  • Regarding interest, the Court noted that while 9% is high, a rate of 7.5% (aligned with Fixed Deposit rates) is suitable.
  • No medical expense documentation was produced, but the Court deemed it just to award Rs 25,000 as medical expenses to the wife (first appellant).

Final Outcome

  • The appeals are allowed.
  • An additional Rs 25,000 is awarded as medical expenses payable to the wife.
  • The entire award, including the original compensation and the medical expense addition, shall attract interest at 7.5% from the date of filing the appeal.
  • The balance of the award, after deducting amounts already paid, must be satisfied within two months of this order.
  • All pending applications, if any, are disposed of.

Topics: Compensation, Insurance, Court Judgment