After Multiple Fractures, Karnataka HC Raises Motorcyclist’s Compensation To ₹8.25 Lakh, Assessing 20% Loss Of Earning Capacity

On 18 February 2012, the claimant was injured when a jeep collided with the motorcycle on which he was riding.

He sustained multiple fractures and sought compensation under Section 166 of the Motor Vehicles Act, 1988.

The Motor Accident Claims Tribunal found the jeep driver negligent and awarded ₹4,19,947 with interest at 6% per annum.

The claimant appealed under Section 173(1), seeking enhancement, principally on the grounds that the Tribunal had undervalued his income and functional disability and had not awarded compensation for loss of amenities

The claim was brought under Section 166 of the Motor Vehicles Act, 1988, and the appeal under Section 173(1) of that Act.

The Court assessed compensation by considering the claimant’s income, functional loss of earning capacity, age-based multiplier, treatment-related losses, and non-pecuniary loss.

It relied on the medical evidence to assess disability and applied a multiplier of 16 for the claimant, aged 33, in calculating future loss of income.

No precedent was cited in the judgment.

The Court accepted ₹7,500 per month as the appropriate notional income for an accident in 2012, rather than the Tribunal’s assessment of ₹4,500, and assessed functional disability at 20% based on the Medical Board’s 50% physical-disability assessment.

Applying a multiplier of 16 and adding 40% to income, it calculated future loss of income at ₹4,03,200.

It increased pain-and-suffering compensation to ₹1,25,000, retained ₹38,000 for attendant and incidental expenses and ₹1,87,147 for medical expenses, reduced the laid-up period to three months and awarded ₹22,500 for loss of income during that period, and awarded ₹50,000 for loss of amenities.

It reassessed total compensation at ₹8,25,847, with interest at 6% per annum from the date of the claim petition until deposit.

The insurer was directed to deposit the enhanced compensation with interest within six weeks, after which the entire amount was to be released to the claimant.