After Leg Amputation, Karnataka HC Raises Accident Compensation From ₹10.43 Lakh To ₹19.1 Lakh

On 25 July 2012, the claimant was injured while riding pillion on a motorcycle that collided with a Tata Ace allegedly parked on the road without warning signals.

The Tribunal found the accident resulted from the offending vehicle’s driver’s negligence and awarded ₹10,43,600 with 6% interest.

The claimant appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhanced compensation, particularly on account of his amputation, disability and loss of earning capacity.

The doctor assessed disability at 80%; the Tribunal had assessed whole-body disability at 60%.

The claimant’s asserted monthly income of ₹10,000 was not supported by documentary evidence.

Under Section 173(1) of the Motor Vehicles Act, 1988, an aggrieved claimant may appeal against a Tribunal’s award.

In assessing loss of future earnings, the Court applied the Karnataka State Legal Services Authority’s notional-income chart, fixing income at ₹6,500 per month for a 2012 accident where the claimant had not proved his asserted income.

It applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, to add 25% towards future prospects for a self-employed claimant aged between 40 and 50, and used a multiplier of 15.

Disability and compensation were assessed by reference to the medical evidence and the claimant’s resulting functional limitations.

The Court found that the claimant’s left leg had been amputated and, having regard to the doctor’s evidence, disability certificate and nature of the injuries, concluded that his whole-body disability should be assessed at 80%, rather than 60%.

As there was no documentary proof of the claimed ₹10,000 monthly income, the Court applied the Karnataka State Legal Services Authority chart and fixed income at ₹6,500 per month.

Adding 25% future prospects and applying a multiplier of 15 and 80% disability, it recalculated future loss of earnings at ₹11,70,000.

It also reassessed the other heads of compensation, bringing the total to ₹19,10,000.

It enhanced total compensation from ₹10,43,600 to ₹19,10,000, resulting in an additional ₹8,66,400, with interest at 6% per annum from the date of the claim petition until realization.

The Insurance Company was directed to deposit the enhanced amount, after credit for any sums already paid or deposited, with accrued interest within six weeks of receiving a certified copy of the judgment.

No order as to costs was made.