Jharkhand High Court
Reliance General Insurance Company ... vs Babita Devi on 11 November, 2025
Author: Gautam Kumar Choudhary
Bench: Gautam Kumar Choudhary
2025:JHHC:33816
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M. A. No.337 of 2019
Reliance General Insurance Company Limited, having its office at 4th Floor,
Chinta Mani Avenue, Off Western Express High Way, Near Virwani
Industrial Estate, Goregaon (East), Mumbai -400063 (Maharashtra) and
also at Chunapur More, District- Murshidabad, Berhamapore and also at 8th
Floor, Himalaya House, 38B, J. L., Nehru Road, Kolkata (West Bengal),
through its Associate Segment Head (Legal Claims), Sri Jitendra Kumar
Pandit, S/o Sri Rajendra Pandit, R/o 47A 1 /2, R. K. Ghoshal Road, PO and
PS- Kasba, District- Kolkata, PIN-700042 (West Bengal).
.... .. ... Appellant(s)
Versus
1. Babita Devi, W/o Late Shiv Narayan Das
2. Amit Kumar, S/o Late Shiv Narayan Das
3. Gourav Kumar, S/o Late Shiv Narayan Das
4. Bisni Devi, W/o Late Jagdish Das
Claimant Nos.2 and 3 are minor children of deceased through their
natural guardian and mother/ claimant No.1, namely, Babita Devi.
All R/o Village- Kopa (Beniadih) Akdoni Khurd, PO and PS- Giridih (M),
District- Giridih.
5. Ram Nath Singh, S/o Late Bisun Singh, R/o H. No.111, Dhori Phusro
Bazar, PS- Bermo, District- Bokaro.
6. Balendra Rai, S/o Ram Narayan Rai, R/o Mahmadpur, PO and PS-
Dariapur, District- Chhapra, Bihar.
. .. ... ...Respondent(s)
...........
CORAM :HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY
.........
For the Appellant (s) : Mrs. Swati Shalini, Advocate
For the Respondent(s) : Mr. P. C. Sinha, Advocate
Mr. Shubham Gautam, Advocate
......
07/ 11.11.2025. Heard, learned counsel for the parties.
1. The appellant- Insurance Company is in appeal against the
judgment and Award of compensation of Rs.76,05,576/- along
with interest @9% per annum from the month of claim case
filed vide Award/ judgment dated 9th April, 2019 passed by
learned District Judge- cum- Motor Accident Claims Tribunal,
Court No.1, Giridih, in Title (M.V.) Suit No.19/2015. Apart from
the said amount, the claimants have also been awarded
Rs.15,000/- as funeral expense, Rs.15,000/- as loss of Estate,
Rs.40,000/- as loss of consortium and Rs.1 Lakh as loss of
love and affection.
2. The finding with regard to liability having been fixed upon the
appellant- Insurance Company and the factum of accident is
not under-challenge.
3. The quantum of compensation is assailed on the ground that
the Tax component on the income of the deceased has not
2025:JHHC:33816
been deducted while calculating the Award of compensation.
Further Rs.1 Lakh has been awarded under the head of love
and affection which is not permissible as once a multiplier is
applied for computing the compensation and lastly the interest
@9% per annum has been awarded which is not in
consonance with the ratio laid down by the Apex Court in the
case of Dharampal & Sons vs. U.P. State Road Transport
Corporation, (2008) 12 SCC 208.
4. It is also argued that contributory negligence had been
specifically pleaded in the written statement filed by the
appellant- insurance company, but neither any issue has been
framed nor any finding has been returned in this regard. The
evidence on record do suggest that it was a head-on collision
between the two vehicles, therefore, prima-facie, it was a case
of contributory negligence.
5. Learned counsel for the claimants/ respondents has defended
the impugned order/ judgment.
6. On perusal of the impugned judgment/ order, it is apparent
that the deceased [Shiv Narayan Das] was an employee of
AMLO PROJECT CAT-1 as a worker and in the proof of
income, the salary slip was adduced into evidence and the
same is marked as Ext.2. On perusal of Ext. 2, it is evident
that the monthly income of the deceased was a sum of
Rs.35,211.11/- and the same does not reflect any tax
deduction. The annual income of the deceased will work out
to be Rs.4,22,533.32/-. The accident took place in the year
2014 and the income slab at the relevant time was that no tax
up to Income Rs.2,50,000/- and further income from
Rs.2,50,000/- to Rs.5,00,000/- it was 10%. Taking 10% on the
taxable income of Rs.1,72,532/-, as such, the per annum
income tax will work out as Rs.17,253/-. In this way, the
annual income will come to Rs.4,05,280.32/- after deducting
the income tax liability.
7. Further, the deceased was aged about 32 years and he left
behind four dependents, therefore, the annual dependency
will be 1/4th of the annual income and the multiplier of 16 will
be applicable. Further, the claimants will also be entitle to get
2025:JHHC:33816
loss of income under the head of Future Prospect which will
be @50%.
8. Under the circumstances, the final compensation will work out
as under :-
Annual income of the Rs.4,05,280/- + = Rs.6,07,920/-
deceased taking Rs.2,02,640/-
Rs.4,05,280/- as annual
income + 50% as Future
prospect
Annual Dependency Rs.6,07,920/- Minus = Rs.4,55,940/-
after deducting 1/4th Rs.1,51,980/-
Multiplier taking 32 16 Rs. Rs.4,55,940/-X
deceased at the time of =Rs.72, 95, 040/-
the accident
Loss of Estate, Funeral Rs.77,000/-
Expenses and Loss of
Consortium
Total Rs.73,72,040/-
9. The claimants/ respondents shall, therefore, be entitled to get
compensation of Rs.73,72,040/-along with interest @ 7.5% per
annum from the date of filing of the claim application till the date
of its realization after deducting the amount already disbursed
to the claimants. The Insurance Company is directed to make
the payment of the compensation amount to the learned
Tribunal within six weeks from this order/ judgment. Thereafter
the learned Tribunal shall disburse the compensation amount
to the claimants within two weeks.
10. The statutory amount deposited at the time of preferring the
instant Misc. Appeal shall be remitted to the concerned Tribunal
so as to be disbursed/ adjusted in the final compensation
amount.
Misc. Appeal is accordingly allowed. Pending I.A., if any
also stands disposed of.
(Gautam Kumar Choudhary, J.)
Sandeep/-
Uploaded
13.11.2025.
