After KSRTC Bus Crash, Karnataka HC Cuts 18-Year-Old Student’s Compensation To Rs 4.28 Lakh, Fixing Whole-Body Disability At 5%

In brief

The question

1. Whether the Tribunal’s assessment of the claimant’s whole-body disability at 7% should be reduced, and whether its calculation of loss of future income required modification.

The court held

The appeal was allowed in part.

It also directed

The award was modified, reducing total compensation from ₹4,34,068 to ₹4,28,672, with interest at 6% per annum from the date of the petition until realisation, except on the ₹40,000 awarded for future medical expenses.

KSRTC was directed to deposit the compensation within six weeks; 50% was to be released to the claimant and the remaining 50% placed in a fixed deposit for three years.

01Facts

The claimant, aged 18, sought compensation for injuries sustained in a road traffic accident on 3 January 2022, alleging that a KSRTC bus driver caused the accident by rash and negligent driving.

pp. 2–4

The Motor Accident Claims Tribunal awarded ₹4,34,068 with interest at 6% per annum.

pp. 2–4

KSRTC appealed under Section 173(1) of the Motor Vehicles Act.

pp. 2–4

The claimant was served but did not appear in the appeal.

pp. 2–4, 7

02Issues

i.1. Whether the Tribunal’s assessment of the claimant’s whole-body disability at 7% should be reduced, and whether its calculation of loss of future income required modification.

pp. 5–6

ii.2. Whether the amounts awarded for pain and suffering and loss of amenities were adequate in light of the claimant’s injuries.

p. 6

iii.3. Whether the Tribunal’s total compensation award should be modified, including its treatment of interest on future medical expenses.

pp. 7–8

03Law Applied

The appeal was brought under Section 173(1) of the Motor Vehicles Act, which provides for an appeal against an award of a Claims Tribunal.

p. 2

In reassessing compensation, the Court applied the multiplier method to calculate loss of future income, using the claimant’s monthly income, the multiplier applicable to his age, and the percentage of whole-body disability.

p. 6

The Court also held in this case that future prospects were not to be added where the assessed disability was below 20%, and that interest was not payable on the amount awarded for future medical expenses.

p. 6, 8

No judicial precedents were cited.

Provisions in the judgment · 1 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173

04Reasoning

The Court accepted the Tribunal’s use of multiplier 18, given the claimant’s age, and its notional monthly income assessment of ₹15,500.

pp. 5–7

However, considering that the claimant was a student and that the grievous injury was a mandible fracture, it found the Tribunal’s 7% whole-body disability assessment excessive and reduced it to 5%.

pp. 5–7

Applying the multiplier method without adding future prospects, the Court recalculated loss of future income at ₹1,67,400.

pp. 5–7

It also increased compensation for pain and suffering from ₹20,000 to ₹65,000 and for loss of amenities from ₹10,000 to ₹50,000, while leaving the other heads unchanged.

pp. 5–7

The Court maintained the exclusion of interest on the ₹40,000 awarded for future medical expenses.

p. 8

05Holding

The appeal was allowed in part.

pp. 7–9

KSRTC was directed to deposit the compensation within six weeks; 50% was to be released to the claimant and the remaining 50% placed in a fixed deposit for three years.

pp. 7–9

LawLens.Karnataka High Court

Original Court PDF