Karnataka HC Raises Compensation To ₹26.55 Lakh For Cleaner Run Over By Reversing Truck, Holds Insurer Liable As He Was Outside the Vehicle

On 13 February 2019, the claimant, a cleaner travelling with the truck’s driver, was outside the vehicle checking it when the driver reversed and the truck ran over his right leg.

The claimant suffered crush injuries and a below-knee amputation.

He had earlier filed a claim under the Employees’ Compensation Act but withdrew it, and then sought compensation under the Motor Vehicles Act.

The Tribunal awarded him Rs.11,74,945 with interest at 6% per annum. The insurer appealed, disputing liability and the award; the claimant cross-objected, seeking enhancement.

Under the Motor Vehicles Act, an employee injured in the course of employment while outside the insured vehicle may, depending on the circumstances, claim as a third party under the Act or as an employee under the Employees’ Compensation Act; where the claim is made as a third party, the insurer’s liability is governed by Section 147(2) of the Motor Vehicles Act.

The Court relied on C. Jayanth v. The Divisional Manager, New India Assurance Co. Ltd. and The New India Assurance Co. Ltd. v. R. Thippeswamy on an employee outside the vehicle being treated as a third party, and referred to Ramashray Singh v. New India Assurance Co. Ltd. concerning an employee injured while travelling in a vehicle.

For calculating compensation, the Court applied the multiplier in Sarla Verma v. Delhi Transport Corporation and the 40% addition for future prospects under National Insurance Co. Ltd. v. Pranay Sethi.

It also used the Karnataka Legal Services Authority’s notional-income guidance for the accident year.

The evidence showed that the claimant was outside the truck when it reversed and injured him. The Court therefore treated him as a third party, notwithstanding his employment as a cleaner, and held that the absence of extra premium did not defeat coverage under the comprehensive policy.

On quantum, it adopted a monthly notional income of Rs.13,250, assessed functional disability at 55%, applied multiplier 18 and added 40% for future prospects, resulting in Rs.22,03,740 for loss of future income.

It reassessed the other heads in light of the amputation and its consequences, while retaining the Tribunal’s award for medical expenses.

It enhanced the total compensation from Rs.11,74,945 to Rs.26,55,685, with the enhanced compensation carrying interest at 6% per annum from the date of the petition until payment.

The insurer was directed to deposit the enhanced amount with accrued interest before the Tribunal within six weeks of receiving the certified judgment; a modified award was ordered.