Indusind General Insurance Co. Ltd. … vs Seema Devi & Ors on 20 May, 2026

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    Delhi High Court – Orders

    Indusind General Insurance Co. Ltd. … vs Seema Devi & Ors on 20 May, 2026

                              $~51
                              *         IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +         MAC.APP. 295/2026 & CM APPL. 29557/2026 CM APPL.
                                        29558/2026, CM APPL. 29559/2026
                                        INDUSIND GENERAL INSURANCE CO. LTD. (FORMERLY
                                        RELIANCE GENERAL INSURANCE CO. LTD.)                                                      .....Appellant
                                                                      Through:            Mr. Shoumik Mazumdar and Ms.
                                                                                          Sabhyata Sharma, Advs.
                                                                      versus
    
                                        SEEMA DEVI & ORS.                                                                      .....Respondents
                                                      Through:
                                        CORAM:
                                        HON'BLE MR. JUSTICE ANISH DAYAL
                                                                      ORDER
    

    % 20.05.2026

    1. This appeal has been filed assailing impugned award dated 20th January
    2026 passed by Motor Accidents Claims Tribunal [‘MACT/Tribunal’],
    North-West District, Rohini Courts, awarding compensation of
    Rs.32,45,234/- along with interest at 9% per annum arising out of an accident
    in which a minor child of 12 years, Master Sunil @ Ansul suffered fatal
    injuries on 29th July 2023 after being hit by car bearing registration no. DL-
    3C-CV-0381 (hereinafter, ‘offending vehicle’), while crossing the road
    towards Kanjhawala.

    SPONSORED

    2. Mr. Shoumik Mazumdar, counsel for appellant/Insurance Company,
    contends that there was no proof of negligence of the offending vehicle and
    merely on the basis that appellant/Insurance Company had given a legal offer
    to settle the matter, MACT concluded the issue of negligence in favour of

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    claimant stating that, “negligence has been admitted by respondent no.3/R3,
    the evidence was closed”.

    3. However, on a query by the Court, Mr. Mazumdar, counsel for
    appellant/Insurance Company, confirms that neither was a written statement
    filed nor was evidence led by appellant/Insurance Company.

    4. Therefore, in the light of the fact that no rebuttal was provided by
    appellant/Insurance Company in respect of the circumstances in which the
    accident occurred, no material was available before the MACT, which would
    allow them to examine the issue of contributory negligence, if at all, on the
    part of the deceased minor child.

    5. Moreover, considering the nature of the accident where the deceased
    was crossing the road and the offending vehicle hit him, the issue would be
    well covered under the principle of res ipsa loquitur, which is a factor for
    assessment of the tort of negligence.

    6. In this regard, reliance may be placed upon decision of this Court in
    National Insurance Company Ltd. v Shehnaj Begum & Ors.
    2026:DHC:3169 which applied the doctrine of res ipsa loquitor which states
    that the burden to rebut the inference of negligence shifts on the defendant.
    Proceedings before the Tribunal are in the nature of an inquiry, therefore,
    strict rules of procedure or evidence do not apply. The assessment of
    negligence has to be conducted on the test of preponderance of probabilities.
    Relevant observations of the Court are extracted as under:

    “Summarizing

    38. From the above discussion relating to the nature of
    inquiry before the Tribunal, the operation of the doctrine of
    res ipsa loquitur, and the applicable standard of proof, three
    aspects emerge clearly.

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    39. First, that the proceedings before the Motor Accident
    Claims Tribunal are in nature of an inquiry and are not
    hemmed in by rules of procedure or evidence. The Supreme
    Court in Shila Datta (supra) [passages extracted in
    paragraph 20 (a) above], has elaborated on this aspect.
    Essentially, a claim under Section 165 of the MV Act, is
    neither a suit nor an adversarial lis.

    40. Tribunal holds an inquiry and makes an award to
    determine compensation, which ought to be just and
    reasonable. The procedure to be followed is summarised in
    the best discretion of the Tribunal. It has the power under
    Section 169 of MV Act to summon persons possessing special
    knowledge of the matters relevant to the inquiry.

    41. In Anita Sharma (supra), the Supreme Court emphasised
    that fault may not be found merely because Tribunals do not
    examine some of the best eyewitnesses, as in a criminal trial,
    but should do their best to analyse the material placed on
    record by the parties.

    42. Having clearly sketched the contours of the procedure
    undertaken by a Tribunal, it brings us to the second issue,
    which is determination of negligence. The nature of the
    accident and the basic facts surrounding the same are
    presented before the Tribunal in the form of a DAR (Detailed
    Accident Report), or through an FIR, or a recording in a
    police diary, along with the claim for compensation. In order
    to arrive at an assessment of negligence and, therefore,
    consequential liability in tort law, the principle of res ipsa
    loquitur, particularly in accident cases, is often brought into
    play.

    43. Doctrine of res ipsa loquitur constitutes an exception to
    the general rule that the burden of proving negligence lies
    upon the claimant. The facts, “tell its own story” and “speak
    for itself”. The fact of the accident itself sometimes
    constitutes evidence of negligence. The principal function of
    the maxim is to prevent injustice, that would be caused to a
    plaintiff who would otherwise be compelled to prove the
    precise cause of the accident and responsibility of the
    defendant, when the facts are unknown to plaintiff but lie only

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    within the knowledge of defendant. The burden then shifts to
    the defendant, who can, by leading evidence, rebut the
    inference drawn by the Court based on the doctrine.

    45. Therefore, for application of the principle, it must be
    shown that the offending vehicle was under the management
    of the defendant and that the accident was such that, in the
    ordinary course of things, it would not have happened if those
    who were in management had used proper care. Having
    reached a reasonable inference based on the facts of the
    accident and being presented with a defence raised by
    defendants that they exercised care to avert foreseeable
    harm, the issue before the Tribunal would be how to balance
    the two aspects and what parameter is to be applied in
    measuring this balance, or in assessing which side the scales
    tilt.

    46. This brings us to the third aspect, which is the test to be
    applied. It is well settled that the test or the burden of proof
    which applies is not that of beyond a reasonable doubt (as in
    criminal cases), but on the test of preponderance of
    probabilities.”

    (emphasis added)

    7. In this light of the matter, the plea raised by appellant/Insurance
    Company cannot be accepted.

    8. Challenge has also been raised to the grant of compensation in case of
    a deceased minor by applying minimum wages of a skilled person, along with
    adopting a multiplier of 18 and grant of 40% towards future prospects.
    However, these parameters have been conclusively established in a series of
    judgments by this Court and the Supreme Court.

    9. This issue has now recently been decided by this court in Rubi Devi
    and Anr. v. The New India Assurance Co. Ltd. And Ors.
    2026:DHC:3674,
    where, after assessing judgments of the Supreme Court and High Court, this

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    Court held that minimum wages of a skilled worker, multiplier of 18 and 40%
    towards future prospects will be considered in relation to death of a minor
    child below 15 years of age. Relevant findings of the Court are extracted as
    under:

    “On notional income of a minor

    10. As regards determination of benchmark income, this
    Court in Sanju (supra), after examining the decision in Kajal
    (supra) and the subsequent judgments that followed and
    relied upon it, concluded that the notional income in cases
    concerning fatal accidents of minor children cannot be
    treated as a fixed or static figure. Instead, the appropriate
    way to assess the income is on the basis of the minimum
    wages payable to a skilled worker in the concerned State. The
    relevant observations of the Court are reproduced below:

    “10. The first of these cases was Kajal v. Jagdish
    Chand
    , which was a case of injury inflicted upon a child
    of 12 years of age. The Court computed loss of future
    income on the basis of minimum wages of a skilled
    worker, reasoning as follows:

    “20. Both the courts below have held that since the
    girl was a young child of 12 years only notional
    income of Rs 15,000 p.a. can be taken into
    consideration. We do not think this is a proper way
    of assessing the future loss of income. This young
    girl after studying could have worked and would
    have earned much more than Rs 15,000 p.a. Each
    case has to be decided on its own evidence but
    taking notional income to be Rs 15,000 p.a. is not
    at all justified. The appellant has placed before us
    material to show that the minimum wages payable
    to a skilled workman is Rs 4846 per month. In our
    opinion, this would be the minimum amount which
    she would have earned on becoming a major.
    Adding 40% for the future prospects, it works to be

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    Rs 6784.40 per month i.e. 81,412.80 p.a. Applying
    the multiplier of 18, it works out to Rs
    14,65,430.40, which is rounded off to Rs
    14,66,000.”

    11. The judgment in Kajal was followed in Master Ayush v.
    Branch Manager
    , Reliance General Insurance Co. Ltd.,
    Minor Roopa v. The Divisional Manager, New India
    Assurance Company Ltd.
    , and Baby Sakshi Greola v.
    Manzoor Ahmad Simon
    , which were all also cases where
    minor victims had suffered debilitating injuries.

    12. This line of judgments has recently been reiterated in
    Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, which
    was once again an injury case. The Supreme Court held
    therein as follows:

    “9. On the aspect of monthly income of the minor
    appellant, we are inclined to interfere with the judgment
    and order of the Courts below. In the present case, it is
    evident that the Courts below have failed to take into
    account the monthly income of the appellant while
    determining the quantum of compensation. It is now a
    well-entrenched and consistently reiterated principle of
    law that a minor child who suffers death or permanent
    disability in a motor vehicle accident, cannot be placed
    in the same category as a non-earning individual for the
    purposes of assessing the amount of compensation
    because the child was not engaged in gainful
    employment at the time of the accident. In such a case,
    the computation of compensation under the head of loss
    of income ought to be made by adopting, at the very
    least, the minimum wages payable to a skilled workman
    as notified for the relevant period in the respective State
    where the cause of action arises. The said observation
    was rendered by this Court, in Kajal v. Jagdish Chand
    and Ors.
    , and Baby Sakshi Greola v. Manzoor Ahmad
    Simon and Anr

    ****

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    15. For the purpose of emphasis, it is again clarified
    here that when a Tribunal or the High Court in appeal,
    is concerned with the case involving a child having
    suffered injury or having passed away, the calculation
    of loss of income necessarily has to be made on the
    matric of minimum wages payable to a skilled worker in
    the respective State at the relevant point of time. It is our
    hope that this restatement helps avoiding such errors
    and thereby obviates the necessity of this Court’s
    interference, applying well-established principles of
    law.”

    On applicable multiplier for a minor

    11. As regards the issue of multiplier, this Court in Sanju
    (supra) assessed a line of judgments including Kajal (supra),
    Master Ayush (supra) Baby Sakshi Greola v. Manzoor
    Ahmad Simon
    2024 SCC OnLine SC 3692, and Karuna
    Parmar v. Prakash Sinha 2025 INSC 1244, which were
    referred and assessed in detail.

    12. Further, reliance was placed in Sanju (supra) upon
    decisions by this Court in National Insurance Co. Ltd. v.
    Pooja
    2025 SCC OnLine Del 1044, Rakesh Sharma v. Ashok
    2025 SCC OnLine Del 1364 and Cholamandalam MS
    General Insurance Co. Ltd. v. Bhupan Paswan
    2025 SCC
    OnLine Del 1045, wherein a multiplier of 18 was adopted
    after considering the decisions of the Supreme Court.

    13. Relevant observations made by this Court in Sanju
    (supra) are extracted as under:

    “26. In my view, the argument, at least before this
    Court, is foreclosed by the judgments in Pooja, Rakesh
    Sharma, and Bhupan Paswan, where the multiplier 18
    has been adopted after considering the judgments in
    Sarla Verma, Kajal, Master Ayush, and Sakshi Greola.
    The discussion on this aspect in Bhupan Paswan reads
    as follows:

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    “31. The learned Tribunal has computed the
    compensation by applying a multiplier of 15, by
    considering the age of the deceased.

    32. The calculation of Multiplier has been laid
    down in the case of Sarla Varma (Supra) as under:-
    “21. We therefore hold that the multiplier to
    be used should be as mentioned in column (4)
    of the Table above (prepared by applying
    Susamma Thomas, Trilok Chandra and
    Charlie), which starts with an operative
    multiplier of 18 (for the age groups of 15 to
    20 and 21 to 25 years), reduced by one unit
    for every five years, that is M-17 for 26 to 30
    years, M-16 for 31 to 35 years, M-15 for 36 to
    40 years, M-14 for 41 to 45 years, and M-13
    for 46 to 50 years, then reduced by two units
    for every five years, that is, M-11 for 51 to 55
    years, M-9 for 56 to 60 years, M-7 for 61 to
    65 years and M-5 for 66 to 70 years.”

    33. Evidently, the Judgment is silent on the
    multiplier to be used for the victims under 15 years
    of age. This incongruity in the matter of selection
    of multiplier in the case of persons in the age group
    up to 15 years was noted in by the Apex the case of
    Divya vs. National Insurance Company Ltd., Civil
    Appeal No.
    7605/2022.

    In the most recent judgment of the Supreme Court
    in Baby Sakshi Greola vs. Manzoor Ahmad Simon
    &Anr., SLP (C) No.
    10996/2018, while referring to
    the judgments of Kajal (supra) and Master Ayush
    (supra), the Apex Court has applied the multiplier
    of 18 for a minor.

    Thus, in light of the above judgments, this Court
    deems it appropriate to ascertain the Multiplier as

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    ’18’ to calculate the loss of dependency is
    calculated accordingly.”

    As noted above, the Supreme Court declined
    special leave to appeal against this judgment.

    27. Having regard to the binding judgment of the
    Coordinate Bench, which considers Sarla Verma, I am
    of the view that the applicable multiplier in such cases
    would be 18.”

    14. Taking a similar view, this Court in Tata AIG General
    Insurance Company v Mukesh Kumar and Ors
    .

    2026:DHC:756, while dealing with an appeal filed by the
    Insurance Company on the ground that the Tribunal while
    assessing loss of dependency in case of death of a minor child
    had erred by taking the multiplier of 18, instead of 15, and
    that income of the deceased should either be determined on
    the basis of notional income or that of an unskilled worker,
    dismissed the said appeal and held as under:

    “22.6 Analysing all these decisions, this Court in Sanju
    (supra) held the view, as extracted above in paragraph
    14, that the applicable multiplier would be 18 and that
    minimum wages of a skilled worker of the concerned
    State would be applicable.

    23. In view of the above discussion, contention of
    appellant cannot be accepted.”

    15. Reliance placed by the counsel for the Insurance
    Company on Thangavel and Ors. (supra) is misplaced, as the
    Supreme Court has categorically opined in paragraph 6 that
    the multiplier of 15 was adopted considering the age of the
    mother of the deceased minor was who 36 years at the time
    of the accident. The relevant paragraph is extracted as
    under:

    “6. We are of the opinion that the monthly income of
    Rs.5,000/- as adopted for the child by the Tribunal is
    perfectly in order. There is no question of any deduction

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    for personal expenses and hence even if the multiplier
    adopted is 15, considering the mother’s age of 36, the
    total compensation for loss of dependency would be
    Rs.7,50,000/-, Rs.30,000 more than that awarded by the
    Tribunal……”

    16. The Supreme Court in the case of Reshma Kumari v.
    Madan Mohan
    (2013) 9 SCC 65, held that the multiplier is to
    be used with reference to the age of the deceased.
    The
    Constitution Bench in National Insurance Company Ltd. vs.
    Pranay Sethi & Ors.
    (2017) 16 SCC 680 affirmed the view
    taken in Smt. Sarla Verma & Ors v. Delhi Transport
    Corporation & Anr.
    (2009) 5 SCC 121 and Reshma Kumari
    (supra), and recorded in the conclusions as under:

    “59.7. The age of the deceased should be the basis for
    applying the multiplier.”

    17. Therefore, multiplier of 15 adopted in Thangavel and
    Ors. (supra) is as per age of mother of the deceased and not
    that of the deceased.

    18. As regards the argument raised by Mr. Paul, counsel for
    Insurance Company, that different multipliers ought to be
    applied in cases of death and injury, relying upon the
    judgment of Supreme Court in Devendra Kumar Tripathi
    (supra), this Court notes that post Kajal (supra), the Supreme
    Court has taken a consistent view regarding the multiplier to
    be applied in cases involving persons below 15 years of age.

    19. Furthermore, this Court has consistently taken the view
    in multiple case including Jamaluddin (supra), Reena
    Raghav (supra), Pooja (supra), Sanju (supra), and Mukesh
    (supra), that a multiplier of 18 ought to be applied in cases
    involving the death of a child below 15 years of age.”

    32. Therefore, in light of the above decisions, the minimum
    wages of a skilled worker in Uttar Pradesh ought to be taken
    as benchmark income, as the deceased was resident of
    Ghaziabad, Uttar Pradesh. At the time of accident minimum
    wages of a skilled worker in Uttar Pradesh were Rs. 7,085/-

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    per month; the same shall have to be accounted for.
    Multiplier of 18, instead of 10, shall be considered.

    33. Future prospects will be awarded at 40%, considering
    that the claimant was below 40 years of age, in line with the
    parameters provided in Pranay Sethi (supra).

    (emphasis added)

    10. Therefore, this Court does not find any infirmity in the impugned award
    and the submissions made by counsel for appellant/Insurance Company are
    rejected.

    11. Accordingly, the appeal is dismissed.

    12. Compensation amount awarded by the impugned award stands
    confirmed and will be deposited before the MACT, along with accrued
    interest. This amount will be released as per the directions provided by the
    MACT.

    13. Statutory deposit, if any, be refunded to appellant/Insurance Company.

    14. Pending applications, if any, are rendered infructuous.

    15. Order be uploaded on the website of this Court.

    ANISH DAYAL, J
    MAY 20, 2026/MK/sp

    This is a digitally signed order.

    The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
    The Order is downloaded from the DHC Server on 25/05/2026 at 21:28:12



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