Gauhati High Court
Insurance LawCivil Procedure and Evidence

Permanent employees aged 50–60 are entitled to a 15% addition for future prospects.

Baitun Nessa Bibi And 4 Ors vs National Insurance Co. Ltd And Anr

Gauhati High CourtJUDGMENT: October 01, 20262 MIN READSOURCE JUDGMENT
Permanent employees aged 50–60 are entitled to a 15% addition for future prospects.. Baitun Nessa Bibi And 4 Ors vs National Insurance Co. Ltd And Anr. Gauhati High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants, the wife and four children of Nurul Amin Ahmed, sought compensation under Section 166 of the Motor Vehicles Act, 1988, after his death in a motor vehicle accident on 4 July 2014. The deceased was a permanent Government of Assam employee, aged 51.

Source reference: p. 3–4

The Motor Accident Claims Tribunal awarded compensation of ₹15,53,380, calculating loss of dependency using a monthly contribution of ₹10,215, a one-fourth deduction for personal expenses, and a multiplier of 11, but made no addition for future prospects.

Source reference: p. 6–7

The claimants appealed, contending, among other things, that future prospects should be included.

Source reference: p. 4
02

Issues

Whether the compensation required recalculation to include future prospects in the deceased’s income

Source reference: p. 5, para. 9

If so, what additional compensation was payable to the appellants

Source reference: p. 7–8, paras. 13–15
03

Law Applied

Under National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, a 15% addition for future prospects applies to the actual salary of a permanently employed deceased aged between 50 and 60 years;

Source reference: p. 5–6, para. 10

deductions for personal and living expenses and the applicable multiplier are guided by Sarla Verma v. Delhi Transport Corporation

Source reference: p. 5–6, para. 10

The claim itself was brought under Section 166 of the Motor Vehicles Act, 1988

Source reference: p. 3, para. 3
04

Reasoning

The Court noted that the deceased was a permanent Government employee aged 51, bringing him within the 15% future-prospects category under Pranay Sethi.

Source reference: p. 6–7, paras. 11–13

Because the Tribunal had omitted that addition, the Court applied 15% to the Tribunal’s monthly family contribution of ₹10,215, producing an additional ₹1,532.25 per month. Multiplying that amount by 12 and the multiplier of 11 yielded ₹2,02,257 in additional compensation.

Source reference: p. 6–7, paras. 11–13
05

Holding

The appeal was allowed to the stated extent, and the Tribunal’s award was modified by enhancing compensation from ₹15,53,380 to ₹17,55,637.

The National Insurance Company was directed to pay the additional ₹2,02,257, with interest at the rate awarded by the Tribunal from the date the appeal was filed until realization; the original award otherwise remained undisturbed.

Source reference: p. 8, paras. 14–16
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19881

Gauhati High Court

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Baitun Nessa Bibi And 4 OrsvsNational Insurance Co. Ltd And Anr

Gauhati High Court · October 01, 2026

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