Authority: Calcutta High Court, Circuit Bench at Jalpaiguri

Order Date: 08 July 2026

Case Overview

  • Appellant: Sunita Devi (sole legal heir of deceased Akhilesh Ray).
  • Respondent: Reliance General Insurance Co. Ltd. (and others).
  • Accident: On 04 March 2008, vehicle WB‑23‑8448 (truck) lost control; victim Akhilesh Ray sustained grievous injuries and died on 11 March 2008 at Paramount Hospital, Siliguri.
  • Claim filed under Section 163A of the Motor Vehicles Act, 1988 (no‑fault liability) on 17 June 2009.
  • Motor Accident Claims Tribunal, Siliguri awarded Rs 4,17,500 with interest @6% from 02‑07‑2015, based on notional monthly income Rs 3,000 and general damages Rs 9,500.
  • Grounds of appeal: (i) failure to consider actual income, (ii) interest should accrue from filing date 17‑06‑2009, (iii) inadequate general damages.

Legal Reasoning

  • The Court noted Notification dated 22 May 2018 (retrospectively applicable) fixes lump‑sum compensation for fatal accidents under Section 163A at Rs 5,00,000.
  • Supreme Court judgment in The New India Assurance Co. Ltd. v. Urmila Halder affirmed the Rs 5 lakh entitlement and clarified computation of interest.
  • High Court precedent in Rekha Dutta & Ors. v. Ram Avatar Lohia held interest is a normal accretion, not a penalty, and should be payable from the date of claim filing.

Final Outcome

  • The original award is modified: appellant entitled to Rs 5,00,000.
  • Interest at 6 % per annum is payable from 17 June 2009 until full realisation, less any amount already received.
  • Clause 2 of the 22 May 2018 Notification requires the compensation amount to increase by 5 % annually from 1 January 2019; this increase is to be added to the payable sum.
  • Reliance General Insurance Co. Ltd. must pay the enhanced amount by cheque to the Registrar, Circuit Bench, Calcutta High Court, Jalpaiguri within two months of this order; failure to do so will attract simple interest at 9 % per annum on the unpaid balance.
  • Payment is subject to verification of court fees; upon receipt, the Registrar will release the amount to the appellant.
  • The appeal is allowed; costs are not awarded. Connected applications, if any, are disposed of.

Topics: Motor Accident Compensation, Insurance Law