Insurance Company Directed to Pay Rs. 6.5 Lakhs to Victim's Family Despite Driver's Age and Lack of License; Interest Awarded at 6% Per Annum
In a significant judgment delivered on September 15, 2026, the Calcutta High Court ruled in favor of the family of a 17-year-old victim who died in a road accident, directing the Oriental Insurance Company Limited to pay a compensation amount of Rs. 6,50,000 along with interest at 6% per annum. The judgment was pronounced by Justice Biswaroop Chowdhury in the combined appeals arising from Motor Accident Claim Case No. 166 of 2017.
The case arose from a tragic accident on December 12, 2026, near Bhaduri Nayakhali para, Krishnanagar, Nadia, where the victim, driving his sister's scooty without a valid driving license, was hit by a Bolero car driven recklessly and at high speed by its driver. Both the victim and his pillion rider succumbed to their injuries at Nadia District Hospital.
The Oriental Insurance Company, the insurer of the offending vehicle, contested the claim primarily on the grounds that the victim was underage and driving without a license, and therefore, the insurer should not be liable for the full compensation amount. The insurer also challenged the quantum of interest awarded and contended contributory negligence on the part of the victim.
However, the Court held that while driving without a license is a punishable offence, it cannot be a ground to deny compensation to the victim's family when the accident was caused due to the rash and negligent driving of another vehicle. The Court further observed that the Insurance Company failed to prove contributory negligence on the part of the victim.
Regarding the compensation quantum, the Court found the monthly income of the deceased reasonably assessable at Rs. 4,000 considering the victim's age and the evidence presented. Adding 40% for future prospects and deducting 50% for personal expenses, the net monthly loss was fixed at Rs. 2,800. Applying the multiplier of 18, the dependency loss was calculated at Rs. 6,40,800. Additionally, the Court awarded Rs. 40,000 each for consortium and Rs. 30,000 for loss of estate and funeral expenses, bringing the total compensation to Rs. 6,50,000.
The Court also upheld the interest rate of 6% per annum from the date of filing the claim until realization, while exempting the Insurance Company from paying interest during the COVID-19 pandemic period from April 25, 2020, to December 31, 2021.
This judgment emphasizes the principle that the violation of driving license norms by a victim does not absolve the party responsible for causing the accident through rash and negligent driving from their liability to compensate the victims or their families.
Bottom Line:
Motor Vehicles Act - Claim for compensation in a motor accident case - Driving without a license cannot deprive the victim or his family of compensation if the accident is caused by rash and negligent driving of another vehicle.
Statutory provision(s):
Motor Vehicles Act, 1988, Sections 166, 168
Oriental Insurance Company Limited v. Tapas Roy, (Calcutta) : Law Finder Doc Id # 2980174
