National Insurance Co. Ltd. v. Sandhya Keora & Ors., 2026
It reinforces the protective and beneficial nature of third-party motor insurance.
Judgement Details
Court
Calcutta High Court
Date of Decision
20 February 2026
Judges
Justice Biswaroop Chowdhury
Citation
Acts / Provisions
Facts of the Case
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Suresh Keora, a BSNL employee, died in 2015 due to a motor accident on G.T. Road near Asansol.
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His wife and daughter filed a motor accident claim under Section 166 MVA.
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The Motor Accident Claims Tribunal (MACT) awarded ₹22.59 lakh as compensation.
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Both the insurer and claimants filed appeals:
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Insurer disputed liability, citing delay in FIR (26 days) and alleged lack of valid license.
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Claimants sought enhancement of compensation.
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Issues
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Whether delay in lodging an FIR can defeat a genuine claim for motor accident compensation?
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Whether the insurer can escape liability or seek pay and recovery without conducting a proper enquiry or giving opportunity of hearing to the insured?
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How to correctly compute compensation for loss of dependency under the Motor Vehicles Act, considering deductions, future prospects, and multiplier?
Judgement
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Delay in FIR: The Court held that families are naturally preoccupied with hospitalisation, death rituals, and mourning, and such delay cannot defeat a genuine claim.
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Insurance liability: Even if breach of policy conditions is alleged (such as invalid license), the insurer must:
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Prove breach with evidence,
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Conduct a proper enquiry,
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Give notice to the insured, and
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Examine relevant witnesses (vehicle owner, transport authorities).
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In this case, none of these steps were taken; thus, insurer could not avoid liability or claim pay and recovery.
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Compensation enhancement:
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Tribunal had wrongly deducted components of salary beyond income tax and professional tax.
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Applying 15% future prospects, appropriate multiplier, and conventional heads, compensation was enhanced from ₹22.59 lakh to ₹34 lakh, with 6% interest.
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Held
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Mere delay in lodging FIR does not defeat a genuine motor accident compensation claim.
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Third-party motor insurance is a beneficial legislation, and technical objections cannot be used to deny compensation.
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Insurer cannot avoid liability or claim recovery without proper enquiry and opportunity of hearing.
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Correct computation of loss of dependency includes only income tax and professional tax deductions, with future prospects and multiplier applied.
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Enhanced compensation of ₹34 lakh with 6% interest is just and reasonable.
Analysis
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Reinforces the protective and beneficial nature of third-party motor insurance.
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Emphasises pragmatic approach: delay in FIR or formalities does not defeat substantive rights of claimants.
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Upholds procedural fairness: insurer must follow due process before denying liability.
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Clarifies correct methodology for loss of dependency calculation in death cases.
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Enhances claimants’ rights under Section 166 MVA and ensures timely compensation.
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Promotes social justice by preventing misuse of technicalities by insurers.