Summary of Judgment The Oriental Insurance Co. Ltd. vs. Niru @ Niharika & Ors.
Related Law:
Motor Vehicles Act, 1988 (Proof of vehicle involvement in accidents)
Citation: 2025 INSC 822
Case Title: The Oriental Insurance Co. Ltd. vs. Niru @ Niharika & Ors.
Special Leave Petition (C) No.: 11340 of 2020 (with connected SLP (C) No. 22136 of 2024)
Court: Supreme Court of India
Judges: Hon’ble Mr. Justice Sudhanshu Dhulia & Hon’ble Mr. Justice K. Vinod Chandran
Date of Judgment: 14th July 2025
Background
Accident & Claim:
Deceased, a UK-based engineer with British Telecom, died in a motor accident on 18.11.1995 when his car collided with a negligently driven truck.
Claimants (wife and two minor children) sought compensation of ₹1.3 crores for loss of dependency.Tribunal’s Award (2017):
Negligence: Held truck driver liable based on FIR and prior claim adjudication.
Compensation Breakdown:
Loss of dependency: ₹78,33,540 (monthly income converted to ₹56,168, 1/3rd deduction for personal expenses, 30% future prospects, multiplier of 13).
Additional grants: ₹40,000 (consortium), ₹15,000 (funeral), ₹15,000 (loss of estate).
Total: ₹79,04,540.High Court’s Modifications (2020):
Adjusted exchange rate (₹52.3526/GBP vs. Tribunal’s ₹54.2601).
Upheld multiplier, future prospects, and interest rate of 9%.
Issues Before the Supreme Court
Whether the multiplier of 13 was justified despite the wife’s remarriage in 2002 (stopping her pension).
Whether the 9% interest rate was excessive given the long delay (1995–2017).
Whether interest on future prospects was legally tenable.
Supreme Court’s Decision
Multiplier & Dependency:
Rejected insurer’s argument to limit multiplier to 7 years (till remarriage).
Held: Minor children’s dependency continues; multiplier of 13 upheld.
Recalculated Loss of Dependency:
₹56,165 (income) × 130% (future prospects) × 12 × 13 × 2/3 = ₹75,93,508.
Total Award: ₹75,93,508 + ₹70,000 (consortium, etc.) = ₹76,63,508.Interest Rate (9%):
No merit in insurer’s delay claim: No evidence proved claimants caused delays (case pending for 12 years due to systemic lapses).
Precedents cited: 9% interest was standard in the 1990s; current bank rates (7%+) justified the rate.Interest on Future Prospects:
Rejected insurer’s contention: Future prospects compensate for delayed payments; claimants suffered due to prolonged litigation.
Direction: Full interest payable from claim filing date (1995) till disbursement, deducting interim compensation (₹50,000).
Conclusion
The Supreme Court dismissed the insurer’s appeals, upholding the High Court’s award of ₹76,63,508 with 9% interest.
Key Takeaways:
Remarriage of a widow does not negate minors’ dependency rights.
Systemic delays cannot deprive claimants of justified interest.
Future prospects’ interest is valid to offset livelihood losses during litigation.
Final Direction:
Insurer to pay balance within 3 months, failing which 12% penalty interest applies.
Pending applications closed.