Insurer remains liable when the driver holds a valid licence despite missing transport documents.

On 14 April 2012, the appellant was a pillion rider on a motorcycle when a tempo struck it from behind. She sustained compound fractures of the right tibia and fibula and underwent inpatient treatment, including insertion of plates and screws

The Motor Accident Claims Tribunal found the tempo driver negligent and awarded ₹2,09,000 with interest at 8% per annum, but absolved the insurer on the ground that the driver lacked transport documents

The claimant appealed, seeking enhancement and challenging the finding on liability

The High Court noted that the liability issue had been resolved in a connected appeal, MFA No. 8094 of 2015, in which the insurer was held liable

1. Whether the claimant was entitled to enhancement of compensation for the injuries and resulting disability.

2. Whether the insurer was liable to satisfy the award, notwithstanding the Tribunal’s finding concerning the driver’s transport documents.

Section 173(1) of the Motor Vehicles Act provides for an appeal to the High Court against an award of a Claims Tribunal.

The Court relied on Mukund Dewangan v. Oriental Insurance Co. Ltd., AIR 2017 SC 3668, as applied in the connected appeal, to sustain the insurer’s liability notwithstanding the Tribunal’s finding concerning transport documents.

For assessing compensation, the Court considered the claimant’s age, injuries, disability evidence and the accident year; it adopted a notional monthly income of ₹7,000 for an accident in 2012 and applied the multiplier of 11 and assessed whole-body disability of 10%.

The Tribunal’s assessment of 10% whole-body disability and multiplier of 11 was retained, but the monthly income was revised from ₹5,000 to ₹7,000, increasing future loss of income to ₹92,400.

The Court left the ₹50,000 award for pain and suffering and ₹68,000 for medical expenses unchanged, finding the former just and proper and the latter a full reimbursement of the bills produced.

It recalculated loss of income during the three-month treatment period at ₹21,000 and retained ₹15,000 for future medical expenses; it also awarded ₹25,000 for loss of amenities, which the Tribunal had omitted despite permanent disability.

The insurer’s liability was governed by the ruling in the connected appeal, which the Court applied to this case.

The Court enhanced the compensation from ₹2,09,000 to ₹2,71,400, carrying interest at 8% per annum from the date of the claim petition until deposit, excluding the 180-day appeal delay.

The insurer was held liable and directed to deposit the amount within six weeks; upon deposit, the compensation and interest were to be released to the claimant electronically.