Injured 53-Year-Old’s Compensation Raised By ₹4.58 Lakh As Karnataka HC Applies 10% Future Prospects

The claimant sustained multiple injuries, including fractures and head, chest, abdominal, pelvic, brachial plexus and spinal injuries, in a road accident on 25 March 2022 involving a tipper lorry.

The Motor Accident Claims Tribunal awarded him ₹16,43,680 with interest at 6% per annum.

He appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

The High Court considered the claimant’s age of 53, the injuries and disability assessed by the doctor, and the Tribunal’s assessment of compensation under the various heads.

An appeal against a motor accident compensation award may be brought under Section 173(1) of the Motor Vehicles Act, 1988.

In assessing compensation for loss of future income, the court applies an appropriate multiplier having regard to the claimant’s age and calculates the loss by reference to income, disability and future prospects.

The Court adopted the Karnataka State Legal Services Authority’s notional monthly income of ₹15,500 for 2022 and applied 10% future prospects for the claimant, aged 53.

No precedent was cited in the judgment.

The Court held that the Tribunal had correctly applied multiplier 11 and assessed the claimant’s disability at 39%, but had used monthly income of ₹11,000 and had not added future prospects.

Substituting the applicable notional income of ₹15,500, allowing 10% future prospects and retaining the multiplier and disability assessment, the Court calculated loss of future income at ₹8,77,734.

Given the injuries, it also increased compensation for pain and suffering and loss of amenities, and recalculated laid-up-period income using the revised monthly income.

It left the awards for medical expenses, attendant and incidental expenses, and future medical expenses undisturbed.

The Court enhanced total compensation from ₹16,43,680 to ₹21,02,134, granting an additional ₹4,58,454 with interest at 6% per annum from the date of the petition until realization.

The insurer was directed to deposit the enhanced amount with interest within six weeks.

Of the enhanced compensation, 50% was to be released to the claimant and 50% placed in a fixed deposit for three years.