Uday Singh Compensation Raised to Rs 23.64 Lakh

Authority: High Court of Chhattisgarh, Bilaspur

Order Date: 05.10.2026

Parties: Appellants/Claimants – Ghasiram Thakur (aged ~54) and Smt. Geeta Bai (aged ~50), residents of Mahalpara, Saraipali, Mahasamund, Chhattisgarh. Respondents – (1) Dinbandhu Bisi, driver; (2) Radheshyam Das, vehicle owner (Vehicle No. C.G. 13 Q 0729); (3) United India Insurance Co. Ltd., Divisional Office, Raipur.
Nature of Proceeding: Appeal under Section 173 of the Motor Vehicles Act, 1988 seeking enhancement of compensation awarded in Claim Case No. 432/2020 for the death of Late Uday Singh (27 years old) in a road accident on 16‑12‑2019.
Original Award: Claims Tribunal awarded Rs 16,65,061 as total compensation.
Contentions: Claimants argued the deceased earned Rs 18,000 per month (salary certificate Ex. P‑15) and sought higher compensation. Insurance respondent contested the salary certificate, citing lack of supporting documents (bank passbook, I.T. return, etc.).
Evidence: Proprietor of Om Traders, Saraipali – Ankit Kumar Agarwal – testified that he issued the salary certificate stating a monthly salary of Rs 18,000 but admitted no other documentary proof of employment or business finances.

The Court accepted that the deceased was employed at Om Traders since 2013 but rejected the Rs 18,000 figure due to insufficient evidence.
The Court fixed the deceased’s monthly income at Rs 15,000 (higher than the Tribunal’s Rs 10,030) in the interest of justice.
Using Supreme Court precedents (National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corp., Magma General Insurance Co. Ltd. v. Nanu Ram), the compensation was recomputed as follows:

| Component | Tribunal Basis (Rs) | Revised Basis (Rs) |

| Income (monthly ×12) | 10,030 ×12 = 1,20,360 | 15,000 ×12 = 1,80,000 |

| Future prospect (+40%) | +48,144 = 1,68,504 | +72,000 = 2,52,000 |

| Deduction (½) | –84,252 | –1,26,000 |

Adding other heads (treatment, other, multiplier) the total compensation becomes:
Original total: Rs 16,65,061
Revised total: Rs 23,63,777
The Court ordered that the additional amount payable to the claimants is Rs 6,98,716, with interest at 6% per annum from the date of filing of the claim before the Claims Tribunal until actual realization.

The appeal is partly allowed; the impugned award is modified to Rs 23,63,777.
The Registry is directed to communicate the enhanced amount to the claimants in Hindi (Devanagari) and may use paralegal workers coordinated with the Secretary, Legal Aid of the relevant area.
All other conditions of the original award remain intact.

Topics: Compensation, Motor Vehicles Act, Insurance