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High Court Intervenes in Million-Rupee Motor Accident Award Dispute

The Rajasthan High Court (Jaipur Bench) has intervened in a significant motor accident compensation case, granting a stay on a lower court’s award while raising questions about the assessment of disability and financial liability. The case, United India Insurance Company Limited vs. Preeti @ Pratigya , centers on the quantum of compensation awarded for injuries sustained in a road incident.

The Backdrop: A Contested Compensation Claim

The matter stems from an award dated February 5, 2026, issued by the Motor Accident Claims Tribunal (MACT) in Fagi, Jaipur. The Tribunal had awarded a substantial compensation of Rs. 21,03,672, along with 7% annual interest, to the claimant, a minor, following an accident involving a motorcycle.

The appellant, United India Insurance Company , challenged this ruling before the High Court, contending that the compensation amount was disproportionate to the actual medical impact sustained by the claimant.

Core Arguments: Disability and Calculation Accuracy

The appellant-insurance company argued that the lower tribunal erred in its evaluation of the claimant's condition. The company’s legal counsel emphasized two primary points of contention:

1. Nature of Injuries: The insurer submitted that the claimant suffered only two simple injuries and one grievous head injury. They argued that the tribunal failed to properly account for the severity—or lack thereof—in its final assessment.
   
   
2. Assessment Errors: Critically, the appellant claimed that no permanent disability was medically established. Despite this, the tribunal reportedly applied a notional income of Rs. 30,000 per annum, multiplied by 60 years, to calculate "future loss," a methodology the insurance company deems legally unsound in the absence of evidence of permanent impairment.

Key Observations

Justice Ashutosh Kumar, presiding over the matter, focused on balancing the claimant’s need for immediate support with the insurance company's right to challenge the calculation basis. During the hearing, the court noted several key points from the record:

• "Learned counsel for the appellant-Insurance Company submits that in this matter, the claimant-respondent No.1 has suffered only two simple injuries and one grievous injury on head."
• "Learned counsel for the appellant-Insurance Company further submits that no permanent disability has been found in regard with the injured."
• "If the amount is so deposited by the appellant-Insurance Company within the stipulated period, then the effect and operation of the impugned judgment and award dated 05.02.2026 passed by learned Motor Accident Claims Tribunal, Fagi, District Jaipur shall remain stayed, till pendency of the appeal."

Court’s Decision: A Conditional Relief

In a balanced interim measure, the High Court directed the United India Insurance Company to deposit Rs. 5,00,000—covering a portion of the total award—with the Fagi MACT within four weeks.

Upon the deposit of this amount, the execution of the initial award is stayed pending the final outcome of the appeal. Crucially, the court ordered that the tribunal may disburse this amount to the claimant, provided the respondent submits an undertaking to repay the funds with 6% interest should the insurance company’s appeal succeed.

This order serves as a reminder of the court's cautious approach regarding the valuation of life and health in motor accident claims, ensuring that compensation models are backed by objective medical evidence rather than speculative projections. The court has summoned the lower court records to conduct a thorough review of the original award proceedings.

The matter is slated to be heard again in four weeks, after the service of notices upon the claimant.