[Cites 5, Cited by 0]
Chattisgarh High Court
National Insurance Company Limited vs Smt. Seetamuni on 10 April, 2026
Author: Sanjay K. Agrawal
Bench: Sanjay K. Agrawal
1
2026:CGHC:16679
ASHOK
SAHU AFR
Digitally signed
by ASHOK SAHU
Date: 2026.04.10
18:06:19 +0530
HIGH COURT OF CHHATTISGARH AT BILASPUR
MAC No. 2314 of 2019
National Insurance Company Limited, Branch Office / Division Office,
Priyadarshni Nagar, Bilaspur, Chhattisgarh. (Insurer Of Motorcycle
Bearing Registration No. C.G. - 14 - ME -7329).
... Appellant
versus
1 - Smt. Seetamuni, Wd/o. Late Sukhnath Ram, Aged About 23 Years,
R/o. Village Raikona, Post Sitonga, Tahsil And District Jashpur,
Chhattisgarh.
2 - Smt. Dubi Bai, W/o. Shri Bihanu @ Bihna Ram, Aged About 50 Years,
R/o. Village Raikona, Post Sitonga, Tahsil And District Jashpur,
Chhattisgarh.
3 - Bihna Ram, S/o. Late Shani Ram, Aged About 50 Years, R/o. Village
Raikona, Post Sitonga, Tahsil And District Jashpur, Chhattisgarh.
...........(Claimants)
4 - Lalchand Ram, S/o. Shiva Ram @ Aetwa Ram Nagesiya, Aged About
35 Years, R/o. Village Kere (Kinkel), Kasira, Tahsil And District Jashpur,
Chhattisgarh. (Owner Of Motorcycle Bearing Registration No. C.G.-14-
ME-7329).
2
5 - Dilip Ram @ Ram Prasad, S/o. Chaman Ram, Aged About 33 Years,
R/o. Purani Toli, Jashpur, District Jashpur, Chhattisgarh. (Driver Of
Motorcycle Bearing Registration No. C.G. -14-ME-7329).
... Respondents
For Appellant : Mr. Anil Gulati, Advocate
For Respondents : None appeared.
(Single Bench)
Hon'ble Shri Justice Sanjay K. Agrawal
Judgment On Board
10.04.2026
1. This appeal under Section 173 of the Motor Vehicles Act, 1988 has
been preferred questioning the award dated 30.08.2019 passed by
the Motor Accident Claims Tribunal, Jashpur, in Motor Accident
Claim Case No.07/2019, by which an amount of Rs. 6,94,599/-
alongwith interest has been awarded to the claimants while allowing
the application filed under Section 163 of the Motor Vehicles Act.
2. Mr. Anil Gulati, learned counsel for the appellant/insurance
company, would submit that in view of the amendment made on
22nd May, 2018, the claimant would be entitled only Rs. 5 Lakhs in
view of the decision of the Supreme Court in the matter of New
India Assurance Co. Ltd. v. Urmila Halder1.
1 2024 SCC OnLine SC 4983
3. None appeared on behalf of the respondents, though served.
4. It is a death case and claim application was filed before the Claims
Tribunal under Section 163-A of the Motor Vehicles Act, which was
allowed and an amount of compensation of Rs. 6,94,599/- along-
with interest has been awarded. However, the Claims Tribunal has
failed to notice the scheduled annexed to Section 163-A of the
Motor Vehicles Act, which has been amended on 22 nd May, 2018,
wherein it has been provided that in case of death, the compensation
payable under Section 163-A of the Motor Vehicles Act would be
Rs. 5,00,000/-.
5. At this stage, it would be appropriate to notice Section 163A of the
Motor Vehicles Act, which reads as under:-
"163-A. Special provisions as to payment of
compensation on structured formula basis.--
(1) Notwithstanding anything contained in this Act or in any
other law for the time being in force or instrument having
the force of law, the owner of the motor vehicle or the
authorised insurer shall be liable to pay in the case of death
or permanent disablement due to accident arising out of the
use of motor vehicle, compensation, as indicated in the
Second Schedule, to the legal heirs or the victim, as the case
may be.
Explanation.--For the purposes of this sub-section,
"permanent disability" shall have the same meaning and
extent as in the Workmen's Compensation Act, 1923 (8 of
1923).
(2) In any claim for compensation under sub-section (1),
the claimant shall not be required to plead or establish that
the death or permanent disablement in respect of which the
claim has been made was due to any wrongful act or neglect
or default of the owner of the vehicle or vehicles concerned
or of any other person.
(3) The Central Government may, keeping in view the
cost of living by notification in the Official Gazette, from
time to time amend the Second Schedule."
6. Notification dated 22nd May of 2018 provides as under:-
SCHEDULE FOR COMPENSATION FOR THIRD
PARTY FATAL ACCIDENT/INJURY CASES CLAIMS
1. (a) Fatal Accidents:-
Compensation payable in case of Death shall be five lakh
rupees.
(b) Accidents resulting in permanent disability :
Compensation payable shall be = [Rs. 5,00,000/- x
percentage disability as per Schedule I of the Employee's
Compensation Act, 1923 (8 of 1923)] :
Provided that the minimum compensation in case of
permanent disability of any kind shall not be less than fifty
thousand rupees.
(c) Accidents resulting in minor injury :
A fixed compensation of twenty five thousand rupees shall
be payable :
2. On and from the date of 1 st day of January, 2019 the
amount of compensation specified in the clauses (a) to (c) of
paragraph (1) shall stand increased by 5 per cent annually.
3. This notification shall come into form on the date of its
publication in the Official Gazette.
7. Now, the question for consideration would be whether Notification
dated 22nd May, 2018 would have retrospective effect as the
accident in the instant case has taken place on 13.04.2018, whereas,
the Notification with regard to amendment in the Schedule annexed
with Section 163-A of the Motor Vehicles Act fixing the
compensation in the death case has come into effect on 22 nd May,
2018 by which in the death case the compensation under Section
163-A of the Motor Vehicles Act would be payable to ₹5,00,000/-.
8. In the matter of Urmila Halder (supra), their Lordships of the
Supreme Court have framed the aforesaid question for
determination in paragraph No.4 and answered in paragraph No.10.
Paragraphs No.4 & 10 state as under:-
4. The short point for consideration before this Court is
whether the amendment in Section 163-A of the Motor
Vehicles Act, 1988, which came into effect by a Gazette
Notification on 22nd May, 2018, would relate to an accident
which had occurred prior to the said date.
10. The order of the High Court is well discussed and we
agree with the view taken. We may, however, add that a
beneficial legislation would necessarily entail the benefit to
be passed on to the claimant in the absence of any specific
bar to the same. In the present case, the liability of the
appellant-Insurance Company has not been interfered with.
Only the computational mode and the modality have been
further clarified, which rightly has been noted by the High
Court and accordingly, the claim has been enhanced to Rs.
5,00,000/-(Rupees Five Lakhs). As 50% of the
compensation amount was stayed by this Court, the same be
paid to the respondent in terms of the impugned judgment
within eight weeks
9. In view of the above, the amount of compensation of Rs. 6,94,599/-
awarded by the Claims Tribunal is reduced to Rs. 5,00,000/-.
Accordingly, the claimants are entitled for an amount of
Rs.5,00,000/- as compensation along-with interest. However, as per
the amendment notified in 22nd May, 2018 on and from the date of
1st day of January, 2019 the amount of compensation specified in
the clauses (a) to (c) of paragraph (1) shall stand increased by 5 per
cent annually. Therefore, the claimants will be entitled for an
additional amount of Rs. 40,000/- from 01.01.2019 to till date i.e.
about 8 years (Rs.5000 x 8 = Rs.40,000) and, as such, they are
entitled for total amount of Rs. 5,40,000/- along-with 6% interest
with effect from 23.01.2019 i.e. date of filing of claim application
before the Claims Tribunal.
10. Since the claimants have not appeared, the Registry is directed to
send a copy of this order to the claimants and the appellant/
insurance company is directed to deposit the rest of the amount
within 45 days.
11. Accordingly, the appeal is partly allowed to the extent indicated
herein above.
Sd/-
(Sanjay K. Agrawal)
Judge
Ashok
