Authority: High Court at Calcutta

Order Date: August 18, 2026

Case Overview

  • Parties: United India Insurance Co. Ltd (appellant insurer) vs. Sumati Das & Ors. (claimants).
  • Original Proceeding: Motor Accident Claim (MAC) No. 24/12 arising from a road accident on 25‑09‑2012 where the claimant Madhu Das was fatally injured by a pick‑up van (No. AS‑17B‑1369).
  • Trial Court Award (23‑06‑2016): Compensation of Rs 17,03,500 with interest at 9% from the date of filing.
  • Issues on Appeal: (i) Whether the driver possessed a valid driving licence at the time of the accident (Issue No‑4). (ii) Whether the compensation awarded was excessive.
  • Arguments: Appellant argued the trial judge omitted Issue No‑4 and that the compensation was excessive. Respondents contended the trial judge’s award was proper.
  • Legal Precedents Cited:
  • National Insurance Company Ltd. vs. Liraza Bibi (FMA‑1003/2025) – insurer may recover compensation only after a proper enquiry and hearing of the vehicle owner regarding policy breach.
  • Reliance General Insurance Co. Ltd. vs. Niyati Kumar & ors (FMA‑1326/2025) – insurer must prove breach of policy condition before seeking recovery; vehicle owners should be given an opportunity to be heard.
  • Court’s Findings: The trial court correctly identified rash and negligent driving, but the compensation on the ground of consortium was excessive. The court reduced the award to Rs 15,00,000 as just and reasonable. The trial court failed to address the licence validity issue; the insurer must now conduct an enquiry as per the cited precedents.

Final Outcome

  • Compensation reduced to Rs 15,00,000 (Rupees fifteen lakh).
  • The insurer must pay this amount plus interest at 6% per annum from the date of filing the claim up to the date of payment.
  • Deposit must be made within eight weeks of this order, before the Registrar General, High Court Calcutta.
  • Claimants may withdraw the deposited amount after completing required formalities; any balance with accrued interest shall be returned to the insurer.
  • The insurer is directed to conduct an enquiry into the vehicle owner’s driving licence validity and any possible breach of policy conditions, giving the owner an opportunity of being heard, following the procedure outlined in National Insurance Company vs. Liraza Bibi.
  • If recovery proceedings are later instituted against the vehicle owner, all points of law remain open.
  • Costs: TCR to be sent by special messenger; claimant to deposit cost within one week.
  • An urgent certified copy of the order may be obtained upon compliance with formalities.

Topics: Motor Accident Compensation, Insurance Policy Violation