Neutral Citation No. 2026:JHHC:22711 IN THE HIGH COURT OF JHARKHAND AT RANCHI M. A. No. 597 of 2016 Bajaj Allianz General Insurance Company Limited, GE Plaza, Airport Road, P.O. & P.S. Yerwada, Pune-411006 through the Manager, Bajaj Allianz General Insurance Company Limited, 804, 8th Floor, Mahabir Tower, Main Road, P.O. & P.S. Ranchi ... Opp. Party No.2/Appellant Versus 1. Sushila Kumari Kisku, Daughter of Ruplal Kisku & Late Surajmani Manjhiyan 2. Jitendra Kisku, son of Ruplal Kisku & Late Surajmani Manjhiyan 3. Sikendar Kisku, son of Ruplal Kisku & Late Surajmani Manjhiyan All residing at Village & P.O. Birsinghpur, (Tola-Kada Kulhi) P.S.- Balipur, District-Dhanbad. (Respondent Nos.2 and 3 were Minors at the time of filing of appeal and were represented by the original respondent no.1 Ruplal Kisku who died during pendency of the appeal) … Claimants/Respondents 4. Shaiyad Md Mahtab, son of Shaiyad Md Safi Ahmed, resident of Bhikrajpur, Baliapur, P.O. & P.S. Baliapur, District- Dhanbad ... Opp. Party No.1/Respondent --------- CORAM: HON’BLE THE CHIEF JUSTICE --------- For the Appellant: Mr Alok Lal, Advocate For the Respondents: None --------- 20/Dated: 31.07.2026 1. Heard Mr Alol Lal, the learned counsel for the appellant. 2. The appellant-Insurance Company challenges the judgment and award dated 7th of June 2016 made by MACT, Dhanbad. 3. Mr Lal submits that in this case the appellant-Insurance Company has raised a specific defence that the offending Tempo (insured vehicle) did not have any permit to ply as an auto-rickshaw at the time of the accident. He submitted that this amounts to a fundamental breach of the terms of the insurance policy and therefore no liability could have been foisted on the appellant- Insurance Company. In the alternative, he submitted that a pay- Neutral Citation No. 2026:JHHC:22711 and-recovery order should have been made. He relied on Amrit Paul Singh & Anr v. Tata AIG General Insurance Co. Ltd. & Ors., (2018) 7 SCC 558, in support of his contention. 4. In the written statement filed by the appellant-Insurance Company at paragraph 12 this is what was pleaded:- “12. That the Plaintiffs and Defendant No. 1 are put to strict proof that the Registered Owner used the Vehicle bearing No. JH-10AF-7649 without any breach of permit and Traffic Rules as per Motor Vehicle Act and Motor Vehicle Rules. The Plaintiffs and Defendant No. 1 are put to strict proof that there was no violation of any Section of Motor Vehicle Act, 1988 and its subsequent amendments.” 5. The above pleading does not amount to a denial or a positive statement that the Tempo did not have a valid permit. This is a general and evasive denial about practically everything. The appellant-Insurance Company has denied that the 1st defendant was a registered owner or that the vehicle was used without any breach of permit and Traffic Rules as per the Motor Vehicle Act and Motor Vehicle Rules. The plaintiffs and the defendants were put to strict proof about practically everything. 6. Based upon the above pleading, it cannot be said that any serious plea about the fundamental breach of the terms and conditions of the insurance policy was at all raised. Even otherwise, the burden of proving a fundamental breach of the terms of the insurance Neutral Citation No. 2026:JHHC:22711 policy would be upon the Insurance Company which is alleging the same. The Insurance Company cannot, based upon such vague pleas, impose excessive burden on the owners of the insured vehicles. 7. In this case, if the Insurance Company was indeed serious about its plea of fundamental breach of the terms and conditions of the insurance policy, nothing prevented the appellant-Insurance Company from taking a precise plea and, after that, leading evidence to the effect that the Tempo in question did not possess any route permit or permit on the date of the accident. No evidence was led on behalf of the appellant-Insurance Company. 8. In the above factual circumstances, the decision relied upon by Mr Lal would not apply. In that case, there was positive evidence that the vehicle in question was being driven without a permit. Besides, in this case, there is nothing to establish that the alleged non- possession of a permit had any nexus with the accident. 9. For the above reasons, I hold that there is no merit in this appeal and dismiss this appeal without any order for costs. 10. However, before dismissing the appeal, I note that in this case, the Tribunal has awarded compensation of only Rs. 5,000/- towards funeral expenses and another Rs. 5,000/- towards loss of estate. Though there were four claimants, no amount has been awarded towards consortium. 11. It is the duty of this Court to ensure that just compensation is paid to the claimants. Following the law laid down in Sarla Verma v. Neutral Citation No. 2026:JHHC:22711 DTC, (2009) 6 SCC 121, and National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, the compensation towards funeral expenses would be Rs. 15,000/- and towards loss of estate another Rs. 15,000/-. Towards consortium, compensation payable would be Rs. 40,000/- to each of the claimants, i.e., a consolidated amount of Rs. 2,00,000/-. Thus, an additional compensation of Rs. 2,20,000/- must be paid to the claimants in this case as and by way of ‘just compensation’. 12. This appeal is dismissed, but the compensation is enhanced by a further amount of Rs. 2,20,000/-. This additional compensation must be deposited by the appellant-Insurance Company in this Court within six weeks from today together with interest @ 6% per annum, which is already awarded by the Tribunal in the impugned award, by adjusting the statutory amount. 13. Upon deposit, the claimants will be entitled to withdraw the said amount by furnishing identity and bank details. The Registry must transfer the compensation/interest amount directly into the bank accounts of the claimants. Under no circumstances should the transfers be otherwise than through regular banking channels. 14. The Member Secretary, JLSA must render all assistance to the claimants. (M. S. Sonak, C.J.) July 31, 2026 N.A.F.R. Manoj/Sharda/Cp.2 Uploaded on 03.08.2026