Fracture Victim’s ₹45,120 Award Raised To ₹1.36 Lakh As Karnataka HC Directs Insurer To Pay First, Recover From Owner

In brief

The question

1. Whether the compensation awarded to the claimants required enhancement in light of their injuries and the evidence on record

The court held

The appeals were allowed in part and the Tribunal’s awards modified.

It also directed

The claimants in MFA Nos. 103275/2015 and 103276/2015 were awarded ₹10,000 each without interest; the claimant in MFA No. 103277/2015 was awarded ₹1,36,300 with interest at 6% per annum from the petition date until realization.

The insurer was directed to deposit the compensation in all three appeals within eight weeks of receiving a certified copy of the judgment, with liberty to recover the amounts from the owner.

No order as to costs

01Facts

On 28 November 2012, the three claimants were travelling in a tractor and trailer when a lorry struck it from behind, causing injuries

¶ 5 · p. 6

They sought compensation under the Motor Vehicles Act.

The Tribunal awarded ₹5,000 each to the claimants in MVC Nos. 1419/2013 and 1420/2013, and ₹45,120 to the claimant in MVC No. 1418/2013; it directed the lorry’s owner, rather than its insurer, to pay

¶ 11 · p. 10

The claimants appealed, seeking enhanced compensation and an order requiring the insurer to pay in the first instance

¶ 12, 14–15 · pp. 10–12

02Issues

i.1. Whether the compensation awarded to the claimants required enhancement in light of their injuries and the evidence on record

¶ 14, 18–25 · pp. 11–16

ii.2. Whether the insurer should be directed to satisfy the awards first and recover the amounts from the vehicle’s owner, given the alleged absence of a valid and effective driving licence

¶ 15, 27–29 · pp. 11–12, 17–18

03Law Applied

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

pp. 2–5

Applying the “pay and recover” principle, the Court relied on Pappu v. Vinod Kumar Lamba, (2018) 3 SCC 208; National Insurance Co. Ltd. v. Swaran Singh, (2004) 3 SCC 297; and the Full Bench decision in New India Assurance Co. Ltd. v. Yellavva, 2020 ACJ 2560.

¶ 28 · p. 18

It held that, in the circumstances, the insurer must satisfy the claimants’ awards first and may then recover the sums from the owner

¶ 28 · p. 18

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

Motor Vehicles Act, 1988 Section 173

04Reasoning

The Court found that the two claimants awarded ₹5,000 had sustained abrasions and incurred medical expenses of ₹1,810 each; considering their asserted pain and inability to attend to daily work, it increased each award to ₹10,000, without interest

¶ 18 · p. 13

For the claimant in MVC No. 1418/2013, it adopted a monthly income of ₹6,500, assessed whole-body disability at 7%, and applied a multiplier of 15, fixing future loss of earnings at ₹81,900.

¶ 19–25 · pp. 14–16

It also enhanced compensation for pain and suffering and amenities, added ₹13,000 for two months’ loss of income, and retained ₹11,400 for medical expenses, producing a total of ₹1,36,300

¶ 19–25 · pp. 14–16

On liability, it applied the cited pay-and-recover authorities to direct the insurer to satisfy the awards first, with recovery against the owner thereafter

¶ 27–29 · pp. 17–18

05Holding

The appeals were allowed in part and the Tribunal’s awards modified.

¶ 30 · pp. 19–20

The insurer was directed to deposit the compensation in all three appeals within eight weeks of receiving a certified copy of the judgment, with liberty to recover the amounts from the owner.

¶ 30 · pp. 19–20

No order as to costs

¶ 30 · pp. 19–20

LawLens.Karnataka High Court

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