Karnataka HC Raises Award To ₹14.68 Lakh For Daughter And Mother Of Woman Killed By Lorry, Requiring Insurer To Pay First And Recover From Owner

On 16 February 2014, a lorry struck and fatally injured Smt. Maheshwari while she was walking beside P.B. Road.

The deceased’s daughter and mother sought compensation from the lorry’s owner and insurer.

The Tribunal awarded ₹8,43,000, but absolved the insurer after finding that the driver lacked a valid licence for the vehicle class and directed the owner to pay.

The claimants appealed seeking enhancement and fastening of liability on the insurer.

Under the pay-and-recover principle, an insurer may be directed to satisfy the compensation award first and then recover the amount from the vehicle owner where the policy has been breached; the Court relied on New India Assurance Co. Ltd. v. Yellavva.

For assessment of dependency compensation, the Court applied the Karnataka State Legal Services Authority’s notional-income chart where documentary proof of income is absent, and the principles in National Insurance Co. Ltd. v. Pranay Sethi concerning future prospects and conventional heads.

It also applied the multiplier method, deducted one-third for personal and living expenses, and awarded consortium to the daughter and mother.

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988.

The Court upheld the finding that the driver lacked a valid licence for the lorry class and that this breached the policy terms.

However, applying Yellavva, it directed the insurer to pay the claimants first, with a right to recover from the owner.

As the claimants produced no documentary proof of income, the Court adopted the 2014 notional income of ₹7,500 per month.

It added 40% for future prospects, applied a multiplier of 16 and deducted one-third for personal expenses, resulting in ₹13,44,000 for loss of dependency.

It then awarded consortium, loss of estate and funeral expenses, bringing total compensation to ₹14,68,000.

The Tribunal’s award was modified to ₹14,68,000, with interest at 6% per annum from the petition date until realization.

The insurer was directed to deposit the amount, less any sum already deposited, within six weeks and was granted liberty to recover the amount paid, together with interest, from the owner.