Chhattisgarh HC Dismisses Insurer Appeal, Enhances Compensation in MACT Case

News Citation : 2026 LN (HC) 231 | 2026:CGHC:15409

April 2, 2026 : The High Court of Chhattisgarh has dismissed an appeal filed by United India Insurance Company Limited challenging liability in a motor accident compensation case, while partly allowing a cross-objection by the claimants to enhance compensation.

In its judgment dated April 2, 2026, Justice Sanjay K. Agrawal upheld the award passed by the Motor Accident Claims Tribunal (MACT), Korba, which had directed the insurer to pay compensation to the family of the deceased, Ramsai Kanwar.

The insurance company had attempted to introduce new grounds at the appellate stage, arguing that the deceased was a pillion rider and that the insurance policy in question was a “liability-only” policy, which would exclude coverage. To support this, the insurer filed applications seeking to bring additional documents on record and amend its written statement.

However, the High Court rejected these applications, noting that such a plea had not been raised before the Claims Tribunal. Relying on Supreme Court precedents, the Court reiterated that additional evidence cannot be introduced at the appellate stage unless it aligns with the original pleadings. The Court also emphasized that parties do not have an automatic right to produce new evidence in appeal, especially when the case can be decided on the existing record.

Finding no merit in the insurer’s arguments, the Court dismissed the appeal.

On the claimants’ cross-objection seeking enhancement of compensation, the Court found that the Tribunal had failed to adequately award compensation under the head of parental consortium. It held that three of the deceased’s children were entitled to ₹40,000 each under this head, resulting in an additional award of ₹1.2 lakh over and above the original compensation of ₹45.57 lakh.

The Court directed the insurer to deposit the enhanced amount within 30 days, along with interest at 7% per annum from the date of filing of the claim petition until realization. All other aspects of the Tribunal’s award were left unchanged.

The ruling reinforces the principle that appellate courts will not entertain new defences or evidence that were not part of the original pleadings, while also ensuring that compensation awards reflect established legal standards on consortium claims.

Case Reference : MAC No. 1459 of 2019, United India Insurance Company Limited v. Smt. Milapa Bai & Ors.; Counsel for Appellant: Mr. Dashrath Gupta, Advocate; for Respondents No. 1–5: Mr. Ashutosh Shukla, Advocate; for Respondent No. 7: Ms. Neha Khandekar, Advocate (for Mr. Ravi Maheshwari, Advocate).