S B I General Insurance Co. Limited Vs Kanika… — Motor Accident Claims | Punjab & Haryana HC (2025)

S B I General Insurance Co. Limited Vs Kanika… — Motor Accident Claims | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Both cross-appeals disposed of with modifications to the Tribunal's award: Tribunal's finding on Issue No.1 (negligence) affirmed; monthly income of ₹42,000/- with 1/3rd deduction upheld; future prospects reduced to 40%; multiplier fixed at '17' per Sarla Verma; loss of estate of ₹18,000/- added; funeral expenses of ₹25,000/- maintained; loss of love and affection substituted at ₹48,000/- per claimant; interest to abide by the Tribunal award; out of the total compensation, ₹50,00,000/- to claimant-Kanika Jain and the remainder equally amongst the parents; pending miscellaneous applications disposed of.

Issue for consideration

Whether the Tribunal rightly recorded a finding of negligence against the driver of the insured vehicle (Issue No.1), as challenged by the Insurance Company in FAO-1793-2016. +1 more

Court's answer

No fault can be found with the findings recorded by the Tribunal on Issue No.1 (negligence of the driver of the insured vehicle); the said findings are affirmed.

Ratio / Principle

The best person to rebut the evidence of the FIR and of eyewitness PW4-Rohit Kapoor was respondent No.1, i.e. the driver of the offending vehicle, who admittedly opted not to appear; the evidence therefore stood unrebutted, supporting affirmation of the negligence finding.

Key takeaways

The salary of the deceased Gaurav Jain was proved by his salary slips for October, 2014 and November, 2014 (Exhibits P-16 & P-17).ratio¶¶22
As per Exhibit P-17 the last pay drawn was ₹42,000/-; the Tribunal rightly assessed the monthly salary of the deceased at ₹42,000/- and applied a deduction of 1/3rd.ratio¶¶22
Future prospects of 40% are to be awarded instead of the 50% applied by the Tribunal.ratio

Detailed headnote1 paragraphs

High Court of Punjab and Haryana at Chandigarh (Pankaj Jain, J.), decision dated 22.12.2025 — Disposes of cross first appeals FAO-1793-2016 (by SBI General Insurance Company Limited) and FAO-5950-2016 (by claimant Kanika Jain) against the Tribunal's award of ₹89,69,960/- with interest @ 7.5% p.a. for the death of Gaurav Jain (aged 28) in a motor vehicular accident dated 06.12.2014, arising from a claim petition under Section 166 of the Motor Vehicles Act, 1988. Negligence finding on Issue No.1 affirmed: FIR (Exhibit P-8) was proved by PW3-ASI Karambir Singh, Investigating Officer, who also proved the report under Section 173 Cr.P.C. and impounding of the insured vehicle from the spot; eyewitness PW4-Rohit Kapoor deposed to rash and negligent driving; the driver of the offending vehicle, the best person to rebut this evidence, opted not to appear. On quantum (Issue No.2): monthly salary of ₹42,000/- proved by salary slips Exhibits P-16 & P-17 and 1/3rd deduction upheld; future prospects reduced to 40% (from 50%); multiplier of '17' applied instead of '18' in terms of the ratio in Sarla Verma v. Delhi Transport Corporation, 2009(3) RCR (Civil) 77; ₹18,000/- added for loss of estate; ₹25,000/- towards funeral expenses maintained; loss of love and affection substituted at ₹48,000/- per claimant (from ₹1,00,000/-). Interest to abide by the Tribunal award; ₹50,00,000/- directed to claimant-Kanika Jain and the remainder distributed equally amongst the parents; pending miscellaneous applications disposed of.

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FAO-1793-2016 a n d FAO-5950-2016

[247] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH [1] FAO-17 9 3-2016 (O&M) Date of D ecision : 22.12.2025

SBI Gen e ral Insurance Company Limite d …Appellant versus

Kanika J a in and others ….Respondents [2] FAO-595 0 -2016 (O&M) Kanika J a in …Appellant versus

Mustfa K h an and others ….Respondents Coram : HON’BLE MR. JUSTICE PANKAJ JAIN Present: Ms. Manvi Verma, Advocat e for Mr. Rajneesh Malhotra, Adv o cate for the appellant in FAO-1793-2016 and for respondent No.3 in FAO-5950-2016. Mr. Aayush Gupta, Advocat e for the appellant in FAO-5950-2016 and for respondent No.1 in FAO-1793-2016 .

Mr. Ankit Bhardwaj, Advoc a te and Mr. B.S. Jaswal, Advocate for respondent Nos.4 & 5 in FAO-1793-2016 .

PANKAJ JAIN, J.

[1] These are cross appeals ar i sing out of a claim petition f i led under Se c tion 166 of the Motor Vehic l es Act, 1988, whereby claim a nts sought c o mpensation on account of de a th of Gaurav Jain son of Nir m al Kumar J a in in a motor vehicular accident dated 06.12.2014 at a young ag e of

28 years.

RAJNEESH SHARMA 2026.01.15 20:19 I attest to the accuracy and integrity of this document

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FAO-1793-2016 a n d FAO-5950-2016

[2] The Tribunal partly allo w ed the petition and awarde d a compens a tion of ₹ 89,69,960/- along with interest @ 7.5% per annum for the period co m mencing from the date of fili n g of the claim petition till the d ate of actual r ealization.

[3] FAO-1793-2016 is at the b ehest of the Insurance Comp a ny, challengi n g the findings recorded by the Tribunal on Issue No.1 i.e. negligen c e of the driver of the insure d vehicle and on Issue No.2 i.e. quantum o f the compensation. [4] FAO-5950-2016 is at the b ehest of the claimants, who are seeking e n hancement of the compensatio n . [5] Learned counsel for the I nsurance Company submits t hat Tribunal erred in returning finding on I s sue No.1 against the driver of the insured v ehicle merely on relying upo n the registration of the FIR. He submits t h at the mechanical report on rec o rd has been totally ignored.

[6] I have heard learned counse l for the parties and have caref u lly gone thro u gh record(s) of the case. [7] Learned counsel for the Insurance Company does not dis p ute that FIR ( Exhibit P-8) was registered qua accident in which Gaurav Jain l ost his life. P W3-ASI Karambir Singh, Investigating Officer, was examine d by the claim a nts. He proved FIR as well a s deposed that report under Sec t ion 173 Cr.P.C. has been filed by him. He a lso proved impounding of veh i cle insured w ith the appellant from the spot o f occurrence. PW4-Rohit Kap o or, eye witn e ss of the accident, appeared and deposed regarding rash a nd negligent driving by the driver of the offending vehicle being caus e of RAJNEESH SHARMA 2026.01.15 20:19 I attest to the accuracy and integrity of this document

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FAO-1793-2016 a n d FAO-5950-2016

accident. He also testified that the driv e r was apprehended on the spo t by public b u t he managed to flee. The b est person to rebut the afore s aid evidence on record was respondent No.1 i.e. driver of the offending vehicle. Admitted l y, he opted not to appear.

[8] In view thereof, this Court f i nds that no fault can be found w ith the findi n gs recorded by the Tribunal on Issue No.1. The same are accordin g ly affirmed.

[9] Both the parties are aggri e ved of findings recorded by the Tribunal o n Issue No.2. A lot has been argued by the counsel represen t ing rival part i es regarding the salary of the d e ceased. In the considered opi n ion of this C o urt, salary of deceased Gaurav Jain was proved by his salary s lip for the m o nth of October, 2014 and Nov e mber 2014 (Exhibits P-16 & P- 1 7). As per E x hibit P-17, his last pay drawn was ₹ 42,000/-. In the consid e red opinion o f this Court, Tribunal rightly a ssessed the monthly salary of the deceased - Gaurav Jain as ₹ 42,000/- and a pplied deduction of 1/3^rd . Fu t ure prospects of 40% need to be awarded in s tead of 50%. In terms of rati o of law laid down by the Supreme Court i n the case of ‘Sarla Verma and others v e rsus Delhi Transport Corporation and another ’, 2009(3) RCR (Civil) 77 , multiplier of ‘17’ needs to b e applied instead of ‘18’. Not h ing has been a warded on account of loss of e s tate. ₹ 18,000/- is awarded for l oss of estate. The amount of ₹ 25,000/- awar d ed on account of funeral expe n ses is mainta i ned. The amount of ₹ 1,00,00 0 /- to each of the claimants for l oss of love a nd affection needs to be subs t ituted and modified by awar d ing

₹ 48,000/- to each of the claimants.

RAJNEESH SHARMA 2026.01.15 20:19 I attest to the accuracy and integrity of this document

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FAO-1793-2016 a n d FAO-5950-2016

[10] With the aforesaid modifica t ions, the appeals are disposed off. The inter e st shall abide by the award p a ssed by the Tribunal. Out of the total co m pensation awarded hereinabo v e, ₹ 50,00,000/- shall be pai d to claimant- K anika Jain and rest of the a m ount shall be distributed equ a lly amongst t he parents.

[11] All pending miscellaneous application(s), if any, also st a nd disposed off.

[12] Photocopy of this order be p l aced on the file of connected ca s e.

(PANKAJ JAIN) JUDGE

22.12.20 2 5

‘R. Sharma'

Whether speaking/ reasoned : Yes/No Whether reportable : Yes/No

RAJNEESH SHARMA 2026.01.15 20:19 I attest to the accuracy and integrity of this document