[Cites 2, Cited by 0]
Jharkhand High Court
Oriental Insurance Co. Ltd vs Rambha Devi on 12 December, 2025
Author: Gautam Kumar Choudhary
Bench: Gautam Kumar Choudhary
2025:JHHC:37468
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M. A. No. 475 of 2018
Oriental Insurance Co. Ltd., Branch Manager, Dhanbad at Burma Mansion's
Bank More, Dhanbad, P.O.-Dhansar, P.S.-Bank More, Dist.-Dhanbad through
Shekhar Kumar Choudhary, Deputy Manager, T.P. Hub at Prabodh Tower,
S.N. Ganguly Road, Ranchi .... .... Appellant
Versus
1. Rambha Devi, W/o Late Ajay Kunwar @ Ajay Kumar Rai
2. Riya Kumar, D/o Late Ajay Kunwar @ Ajay Kumar Rai (minor)
3. Shivam Kumar, S/o Late Ajay Kunwar @ Ajay Kumar Rai (minor)
4. Rimjhim Kumari, D/o Late Ajay Kunwar @ Ajay Kumar Rai (minor),
respondent Nos. 2 to 4 are minor represented through their mother and
natural guardian, respondent No.1, All R/o Village-Yadavpur, P.O.-
Yadavpur, P.S.-Govindpur (Barwadda), Dist.-Dhanbad
5. Nitya Prasad Yadav, W/o Late Kali Yadav
6. Siyaram Yadav, S/o Late Kali Yadav, both are R/o Kali Yadav Bhalwar
Pawai Amarpur, P.O. & P.S.-Amarpur, Dist.-Banka
.... .... Respondents
With
M. A. No. 604 of 2018
1. Rambha Devi, W/o Late Ajay Kunwar @ Ajay Kumar Rai
2. Riya Kumari, D/o Late Ajay Kunwar @ Ajay Kumar Rai (minor)
3. Shivam Kumar, S/o Late Ajay Kunwar @ Ajay Kumar Rai (minor)
4. Rimjhim Kumari, D/o Late Ajay Kunwar @ Ajay Kumar Rai (minor),
respondent Nos. 2 to 4 are minor represented through their mother and
natural guardian, respondent No.1, All R/o Village-Yadavpur, P.O.-
Yadavpur, P.S.-Govindpur (Barwadda), Dist.-Dhanbad
.... .... Appellants
Versus
1. Nitya Prasad Yadav, W/o Late Kali Yadav
2. Siyaram Yadav, S/o Late Kali Yadav, both are R/o Kali Yadav Bhalwar
Pawai Amarpur, P.O. & P.S.-Amarpur, Dist.-Banka, Bihar
3. Oriental Insurance Co. Ltd., Branch Manager, Dhanbad at Burma
Mansion's Bank More, Dhanbad, P.O.-Dhansar, P.S.-Bank More,
Dist.- Dhanbad .... .... Respondents
-----
CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY
-----
For Appellant-Insurance Co. : Mr. Alok Lal, Advocate
Mr. Santosh Kumar, Advocate
For the Claimants : Mr. Rajiv Kr. Karan, Advocate
-----
Oral Order
12 / Dated : 12.12.2025
1. Both these appeals arise out of common judgment and award of
compensation passed in Title (M.V.) Suit No. 101 of 2013, whereby and
whereunder, liability to pay compensation under Section 166 of M.V. Act
has been fixed on the Insurance Company.
2025:JHHC:37468
2. Insurance Company is in appeal against the quantum of compensation
awarded, whereas the claimants are before this Court for enhancement of
the compensation amount.
3. The facts are not in dispute and does not need reiteration. The deceased
Ajay Kunwar @ Ajay Kumar Rai died in motor vehicle accident due to
rash and negligent driving by the driver of the tractor bearing No.
BR10B-8254.
4. The owner of the tractor neither appeared before the Tribunal nor before
this Court.
5. The liability is under challenge by the Insurance Company on the ground
that the said tractor was a goods carriage vehicle and the Tribunal at para-
12 has noted that the deceased was permitted to travel by the driver of the
tractor on the mudguard of it resulting in the fatal accidental death.
6. It is argued by learned counsel for the Insurance Company that the permit
was also required for a tractor and in support of his contention, a letter of
the Deputy Transport Commissioner-cum-Secretary dated 21.08.2015
obtained under the RTI is obtained wherein it has been stated that where
the tractor is being used for commercial purpose then a permit is
required.
7. In the present case, there is no evidence as such that the tractor was being
used for commercial purpose, therefore the plea that there was breach of
policy of insurance on account of the fact that offending vehicle was
plying without any valid permit is not sustainable.
8. Since the deceased was travelling as a gratuitous passenger on the
tractor, therefore, there was a breach in terms of the insurance policy.
Consequently, the Insurance Company will be entitled to right to recover
the amount paid to the claimants.
9. It is argued by learned counsel for the claimants that the award of
compensation is not as per the ratio laid down by the Hon'ble Apex Court
in National Insurance Company Ltd. Vs. Pranay Sethi (2017) 16 SCC
680. No compensation has been awarded under the heading of future
prospect, rate of interest is 6% and the meagre amount has been allowed
under the non-conventional head.
10. Having considered the submissions advanced on behalf of both sides,
there is merit in the submission made on behalf of the claimants.
2025:JHHC:37468
11. Under the circumstance, taking the monthly income of the deceased to be
Rs.3000/-, as assessed by the Tribunal on the basis of oral evidence and
the age of the deceased to be 33 years old, the applicable multiplier is 16
and 1/4th deduction on personal living expense as four claimants have
been arrayed in the present case.
Final compensation will work out as under:
Annual Income Rs 3,000/- x12 Rs. 36,000/-
Annual dependency after deducting Rs. 27,000/-
1/4th on the living and personal
expenses of the deceased
(Rs. 36,000 - Rs.9000)
Applying multiplier of 16 Rs.4,32,000/-
Future Prospect @ 40% Rs.1,72,800/-
Conventional head Rs 77,000
Total Rs. 6,81,800/-
10. The claimants shall therefore be entitled to compensation of
Rs.6,81,800/- with interest @ of 7.5% per annum on the compensation
amount from the date of filing of claim application from the appellant
Insurance Company. The Insurance Company is accordingly directed to
make payment of the compensation amount to the Tribunal within a
month of this order. The Insurance Company shall have right of recovery
against the owner of the tractor for the compensation paid.
Statutory amount deposited by the Insurance Company at the time of
filing of the appeal to be remitted to the Tribunal for being paid to the
claimants against the final compensation.
M. A. No. 475 of 2018, preferred by Insurance Company, is partly
allowed, whereas M. A. No. 604 of 2018, preferred by the claimants, is
allowed. Pending, I.A. if any, stands disposed of.
(Gautam Kumar Choudhary, J.)
AKT/Satendra
Uploaded
13.12.2025
