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2026 Supreme(MP) 192
IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
VINAY SARAF, J.
M.P. State Mining Corporation Ltd. - Appellant
Versus
United India Insurance Co. Ltd. And Others – Respondents
MISC. Appeal No. 2467 of 2014 With MISC. Appeal No. 151 of 2015
Decided On : 19-08-2026
Important Points
Subject
Civil Law - Motor Accident Claims
Act Referred
Headnote
(B) Motor Accident Claims - Compensation - Loss of Dependency - In the absence of evidence proving additional income from multiple professions, the court can only consider the documented salary for calculating loss of dependency. (Para 19)
(C) Motor Accident Claims - Future Prospects and Consortium - For a deceased aged 51, an addition of 15% towards future prospects is mandatory, along with standard amounts for loss of estate, funeral expenses, and consortium as per established Supreme Court guidelines. (Para 20, 21)
Issues: Whether the liability of the insurance company under a comprehensive policy is unlimited for occupants and whether the compensation awarded to the claimants requires enhancement.
For the Appellant :Shri Kantesh Kumar Gupta, Advocate
For the Respondents:Shri Pradip Kumar Gupta, Advocate, Shri Swapnil Sharma, Advocate.
| Table of Content |
|---|
| 1. facts of the accident and the initial award by the motor accident claims tribunal. (Para 1 , 2 , 3 , 4 , 5) |
| 2. arguments regarding the distinction between act policy and comprehensive policy and the impact of irda circulars on liability. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 3. insurer's liability is limited to the risk amount for which the premium was actually paid. (Para 16 , 17 , 18) |
| 4. enhancement of compensation based on documented income, future prospects, and standard consortium charges. (Para 19 , 20 , 21 , 22 , 23) |
| 5. final disposal of the appeals and order for costs. (Para 24 , 25) |
ORDER :
VINAY SARAF, J.
This order will decide Misc. Appeal Nos. 2467/2014 and 151/2015, as both the appeals are arising out of one and common award dated 19/09/2014 passed by XIII Additional Member, Motor Accident Claims Tribunal, Indore (M.P.) in Claim Case No. 267/2012, whereby the claim petition preferred by the claimants was partly allowed and an award was passed for payment of compensation of Rs. 28,86,616/- with a further direction that the liability of the Insurance Company will be limited up to Rs. 1,00,000/- only.
2) Misc. Appeal No. 2467/2014 has been preferred by the M. P. State Mining Corporation Limited, who was the owner of the offending vehicle, assailing the order of limiting the liability of the Insurance Company and Misc. Appeal No. 151/2015 is preferred by the claimants for the same declaring unlimited liability of insurance company and enhancement of the compensation amount.
3) The short facts of the case are that on 20/02/2012 at about 04:00 pm deceased Ravindra Shah was travelling in a car bearing registration number MP-04-CF-7300 with the President of M. P. State Mining Corporation Limited Shri Govind Malu from Indore to Bhopal and when the car reached near Jatakheda Jod, Sehore due to rash and negligent driving in a high speed, in front of Masajid, the car was turned turtle and resultantly the deceased Ravindra Shah sustained serious grievous injuries and succumbed to the same at spot itself. The other passengers have also received injuries. The incident was reported at Police Station Mandi, District Sehore and an offence was registered against the Rishi S/o Bhabhuti, driver of the car vide Crime No. 58/2012 and after investigation the charge sheet was filed against him.
4) The wife, children and mother of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 seeking compensation of Rs.1,25,00,000/- against the Driver, Owner and Insurance Company, wherein the Insurance Company has set up specific defence that the liability of the Insurance Company was limited up to Rs. 1,00,000/- as per the terms of the policy and the premium was paid for the liability of the passengers of the car was only up to the coverage of the risk of Rs. 1,00,000/-.
5) The Tribunal by award dated 19/09/2014 decided the claim petition, wherein the Tribunal has held that the accident occurred due to the rash and negligent driving of the car by the Driver, resultantly the passenger Ravindra Shah died. The Tribunal held entitle the claimants for total compensation of Rs. 28,86,616/-, but the liability of the Insurance Company was limited up to Rs. 1,00,000/- only and rest of the award was passed against the Driver and Owner of the offending vehicle.
6) The owner of the vehicle, M. P. State Mining Corporation Limited has preferred Misc. Appeal No. 2467/2014 under Section 173(1) of the Motor Vehicles Act, 1988 assailing the award on the ground that the liability of the Insurance Company was not limited and Insurance Company is under an obligation to indemnify the complete liability of the owner. The owner has relied upon the circular dated 16/11/2009 issued by Insurance Regulatory and Development Authority (IRDA), which mandates to cover the whole liability of compensation towards the occupants of the private vehicle, when issuing the Private Car Package Policy.
7) The counsel appearing on behalf o
