The Accident Was In 2019. The Compensation Is Being Paid In 2026.
Under the provision in force when the accident happened, the family would have received Rs 50,000. The High Court applied the figure Parliament has since set.
The Court held that a claimant entitled to compensation under Section 140 could still be granted compensation under the now prevailing Section 164, which raises death compensation to Rs 5 lakh, because it is a beneficial provision enacted by Parliament. Given that compensation was being granted in 2026 for a death in 2019 on a claim of 2023, the appellants were awarded Rs 5 lakh with interest at 7 per cent from the date of the claim.
- Rs 50,000 to Rs 5 lakh — the difference between the old no-fault provision and the current one.
- Beneficial legislation is read to benefit, and the delay in deciding was part of why the higher figure applied.
- The occupant of an insured vehicle is covered, and the insurer indemnifies the owner.
- Seven per cent interest runs from the date of the claim petition until actual payment.
- Court
- High Court of Sikkim at Gangtok
- Bench
- Justice HON'BLE MR. JUSTICE BHASKAR RAJ PRADHAN
- Citation
- MAC App. No. 20 of 2024
- Case
- MAC App. No. 20 of 2024
- Decided
- September 2026
- Outcome
- Appeal allowed to the extent of Rs 5 lakh with 7% interest
Who could claim
The claim was made by the heirs of the deceased, who was an occupant of the accident vehicle. That vehicle's owner had duly insured it.
The insurer was therefore liable to indemnify the owner for his liability under Section 140 of the Motor Vehicles Act.
Why the higher figure applied
In Ram Murti the Supreme Court examined a similar situation and found that a claimant entitled to compensation under Section 140 could still be granted compensation under the now prevailing Section 164, which raises compensation in case of death to Rs 5 lakh and in case of grievous hurt to Rs 2.5 lakh, it being a beneficial provision enacted by Parliament.
Under the then existing Section 140, the claimants would have been entitled to only Rs 50,000.
The death occurred on 12 November 2019, the claim petition was filed on 14 February 2023, and the Court was granting compensation in 2026. On that footing the appellants were held entitled to Rs 5 lakh, with interest at 7 per cent from the date of the claim until actual payment.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
How much is no-fault compensation for a death now?
Rs 5 lakh under Section 164, against Rs 50,000 under the older Section 140. The Court applied the higher figure.
Does it matter that the accident happened before the change?
The Court granted the higher amount because it was deciding in 2026 and the later provision is beneficial.
Claiming no-fault compensation years after the accident
- Check which provision was in force at the accident and which is in force now; the gap is the argument.
- Plead the beneficial character of the later provision expressly, with the authority.
- Establish that the deceased was an occupant of an insured vehicle and that the policy was live.
- Ask for interest from the date of the claim petition, not the date of judgment.
Source. High Court of Sikkim at Gangtok, MAC App. No. 20 of 2024, decided September 2026 by Justice HON'BLE MR. JUSTICE BHASKAR RAJ PRADHAN. This explainer is written from the judgment text as reported.
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