An insurer that collects premium for a paid driver must cover his accident compensation, irrespective of negligence.

On 29 July 2012, a tanker overturned, causing its driver, the claimant, to lose his right hand.

The Tribunal awarded him ₹21,83,000 and held the insurer liable.

The insurer appealed, challenging both quantum and liability; the claimant filed a cross-objection seeking enhancement.

Whether the insurer was liable to satisfy the award for the claimant, who was the tanker’s paid driver, notwithstanding the contention concerning the driver’s negligence.

Whether the Tribunal’s assessment of compensation was excessive or inadequate and required adjustment.

The judgment identifies no statute or precedent as the basis of decision.

It treats the collection of an additional premium covering a paid driver as requiring the insurer to satisfy compensation awarded to that driver; in this case, the Court held that the driver’s negligence did not affect that obligation.

For assessment of compensation, the Court applied the case-specific figures it found appropriate: income of ₹10,000 per month, 40% future prospects, 80% disability, and a multiplier of 17, together with compensation under the relevant non-pecuniary and expense heads.

The policy showed that the insurer had collected an additional premium for a paid driver, and the claimant was admittedly driving the tanker for payment.

The Court therefore held the insurer liable and rejected the Tribunal’s direction permitting recovery from an unknown vehicle.

On quantum, it upheld the Tribunal’s ₹10,000 monthly income assessment and 80% disability finding, but added 40% for future prospects because the claimant was 27.

It increased pain, shock and suffering to ₹1,00,000 and awarded ₹1,00,000 for loss of amenities, while leaving the other specified heads undisturbed.

These adjustments produced total compensation of ₹29,85,800, or ₹8,02,800 more than the Tribunal’s award.

It awarded an additional ₹8,02,800 with interest at 7.5% from the date of the claim petition until realization, directed deposit within ten weeks, and ordered disbursement of the enhanced sum and the amount held by the Tribunal’s Nazir to the claimant after verification.