Authority: High Court at Calcutta, 1st Circuit Bench at Jalpaiguri Civil Appellate Jurisdiction

Order Date: 20.08.2026

Case Overview

  • Parties: Appellants – Shefali @ Shephali Rabidas & Ors (wife, son, daughter, minor son of the deceased); Respondent – United India Insurance Co. Ltd. & Anr.; also involved – M/s. Balaji Enterprises (dealer) and the deceased Nanadalal Rabidas.
  • Nature of proceedings: Two appeals (FMA 33/2023 filed by claimants and FMA 56/2026 filed by the insurer) against the Motor Accident Claims Tribunal’s award dated 09.08.2023 in MAC case No. 74 of 2021.
  • Background: The deceased, a 50‑year‑old cobbler earning Rs 400 per day, died in a tractor accident on 02.11.2020. Claimants sought Rs 18,25,000 compensation on various heads. The Tribunal awarded Rs 4,56,100.
  • Issues raised:
  • Claimants argued the Tribunal used an incorrect notional income (Rs 3,300) instead of the Supreme Court‑prescribed Rs 9,000 per month and omitted future prospect multiplier and interest under Section 171 of the Motor Vehicles Act.
  • Insurer contended the policy was a road‑risk package covering only the dealer’s trade licence period and thus did not cover third‑party liability after the vehicle left the showroom.
  • Both sides debated the entitlement to loss‑of‑consortium compensation for spouse and children.

Final Outcome

  • The Court held the insurance policy was a comprehensive motor insurance covering third‑party risk and therefore enforceable against United India Insurance.
  • Notional monthly income fixed at Rs 9,000. Future prospect calculated as 25 % of Rs 27,000 (total income Rs 1,35,000); after deducting one‑quarter for personal expenses, Rs 1,01,250 remains. Applying the multiplier of 13 yields loss‑of‑earnings compensation of Rs 13,16,250.
  • General damages determined as per Supreme Court precedents: Rs 15,000 loss of estate, Rs 15,000 funeral expenses, Rs 40,000 spousal consortium, Rs 80,000 parental consortium (for two children) – total Rs 1,20,000.
  • Total revised compensation: Rs 15,06,250.
  • Additional amount over the Tribunal award: Rs 10,50,150.
  • Interest to be paid at 9 % per annum from the date of filing the claim application (29 January 2021) until realization.
  • No payment has been made to date; the default clause of the impugned award remains operative until cheques are issued to the claimants.
  • The civil appeals are disposed of on these terms; any connected applications stand closed.

Topics: Motor Accident Compensation, Insurance Liability