Compensation for 3% permanent disability was reduced to ₹10,000.

The claimant alleged that on 11 October 2012, a bus insured with the appellant collided with his two-wheeler because of the bus driver’s rash and negligent driving. He sustained multiple injuries, underwent treatment and surgeries, and sought compensation.

The Motor Accident Claims Tribunal found the bus driver negligent and awarded Rs. 5,50,112. The insurer appealed under Section 173 of the Motor Vehicles Act, 1988, principally challenging the Rs. 60,000 awarded for permanent disability, given that the disability certificate assessed disability at 3%.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, which provides for an appeal against an award of a Claims Tribunal.

The Court applied the principle that compensation for permanent disability should be assessed with regard to the percentage of disability and the circumstances of the case; it considered Rs. 10,000 reasonable for the claimant’s 3% disability.

The Court upheld the negligence finding because the injured claimant’s evidence, the FIR and other record materials supported the Tribunal’s conclusion, and the insurer had produced no sufficient contrary evidence.

On quantum, the disability certificate assessed permanent disability at 3%, making the Tribunal’s Rs. 60,000 award excessive; the Court reduced that head to Rs. 10,000.

It left the remaining heads undisturbed, taking account of the claimant’s multiple injuries, hospitalisations and surgeries.

The negligence finding and the awards under the other heads were confirmed, but the total compensation was reduced from Rs. 5,50,112 to Rs. 5,00,112, with interest at 7.5% per annum from the date of the claim petition.

The insurer was directed to deposit the reduced award, after crediting any amount already deposited, within eight weeks; any excess deposit could be withdrawn by the insurer.