Breadwinner lost to bus crash: Orissa High Court upholds Rs 61.44 lakh payout to kin; secures Rs 10 lakh FD for minor daughter

Justice G Satapathy was hearing an appeal filed by Oriental Insurance Company.

“The insurer is liable to pay the modified compensation amount of Rs 61,44,016/- together with the simple interest @ 6% per annum…to the claimants-R-1 to 4 (family of auto driver) proportionately in terms of the award with slight modification of fixed deposit of Rs 10,00,000/- in the name of R-3-Swagatika Rath, since she is going to attain majority on 1st April, 2026 and she be paid with cash of Rs 5,00,000/-,” the high court said in its March 7 order.

‘4 dependents, including minor daughter’

• The daughter of the autorickshaw driver, who will attain majority on April 1, 2026, will have Rs 10 lakh kept in a fixed deposit in her name, along with Rs 5 lakh to be paid to her upon attaining majority.
• There was no dispute that the accident occurred due to the rash and negligent driving of the bus, which was evident from the evidence placed on record.
• It was noted that the insurer has disputed the driving licence of the driver of the offending bus, but it has not produced any material placed on record to confirm its claim that the driving licence of the driver of the offending bus was not valid at the time of the accident.
• On the contrary, the court held that the driver was having a valid and effective driving licence at the relevant time of the accident.
• The route permit of the offending bus was valid at the relevant time, and it was plying on the same route on which it was authorised to ply.

• The insurer is liable to pay the modified compensation amount of Rs 61.44 lakh, together with the simple interest of 6 per cent per annum from the date of filing of the claim till its actual realisation to the family of the deceased, proportionately in terms of the award.
• It is noted that the tribunal has computed the loss of dependency for the claimants by mainly relying upon the income tax returns (ITRs) for five assessment years.
• The tribunal declared that the annual income of the autorickshaw driver is Rs 4.98 lakh, which was found to be correct by the high court.
• Since the auto driver was aged about 49 years, an addition of 25 per cent to the annual income towards his future prospects is considered relevant.
• He has four dependents, and a multiplier of 13 is considered applicable.
• The net annual loss of dependency of the claimant is quantified as Rs 60.74 lakh.
• Additionally, the claimants are also entitled to Rs 70,000 towards general damages under non-conventional heads of loss of estate, funeral expenses and loss of love and affection, etc.
• Therefore, the total compensation for the claimants is Rs 61.44 lakh.
• The insurer is directed to pay the modified compensation amount to the family members of the auto driver within eight weeks from now by depositing the same before the tribunal concerned.

‘Rash, negligent driving, accident’

• Rath was travelling from Jeypore to Berhampur on a bus named “Khambeswari” when he met with an accident at around 10 pm on a day in March 2024.
• The said bus was driven rashly and negligently by its driver, and capsized near Podagada Panchabati, Koraput, resulting in the Rath’s death on the spot.
• The accident was reported to the police authority concerned and was registered, which resulted in the submission of a chargesheet against the driver of the offending bus.
• Subsequently, the legal representatives of the autorickshaw driver approached the tribunal as claimants for compensation towards the death of their sole breadwinner by impleading the owner and insurer of the offending bus.

• Responding to this claim, the owner of the offending bus did not prefer to contest the claim and was, accordingly, set ex parte.
• Whereas the insurer of the offending bus appeared and filed its written statement disowning its liability on various grounds, including non-disclosure of material facts and maintainability of the claim, and also for the driver of the offending bus not having a valid and effective driving licence.
• The tribunal analysed the material placed on record and passed the said judgment directing the insurer to satisfy the award indicated.
• Aggrieved by this order, the insurance company approached the high court.