Authority: High Court of Orissa at Cuttack
Order Date: 28 September 2026
Case Overview
- Appellant: Divisional Manager, United India Insurance Co. Ltd, Bhubaneswar (insurer). Respondents: Chema Behera and others (family of deceased Prasanta Behera).
- The dispute arose from a road accident on 30 August 2016 where the deceased driver was killed; claimants filed a compensation application before the Motor Accident Claims Tribunal (MACT), Puri (MAC Case No.58 of 2018) seeking loss of sole breadwinner.
- MACT had directed the insurer to pay Rs 27,43,200 with simple interest at 7.5% per annum from 23 March 2018.
- The insurer appealed under Section 173(1) of the Motor Vehicles Act, challenging the maintainability of the claim and the quantum of compensation.
- The High Court examined evidence, including police charge sheet indicating rash and negligent driving, and considered the deceased’s earnings (estimated as skilled labour wage).
Final Outcome
- The appeal is allowed in part; the compensation is reduced to Rs 19,05,400 with interest at 6% per annum from the date of filing of the claim application.
- Compensation distribution:
- 30% fixed deposit each for R3‑R4 (minor children) in a nationalized bank for five years.
- 30% fixed deposit each for R5‑R6 (minor children) until they attain majority.
- 10% fixed deposit in the name of R2.
- Remaining 30% paid to R2‑R6 proportionately in cash.
- Minor beneficiaries may withdraw quarterly interest from the fixed deposits.
- Any statutory deposit, if applicable, shall be refunded to the insurer with accrued interest.
Topics: Motor Accident Compensation, Insurance Liability