Karnataka HC Raises Compensation To ₹43.05 Lakh For Driver Who Lost Both Legs Below The Knees In Crash

In brief

The question

1. Whether the appellant was entitled to enhanced compensation, including on account of his income, disability, and the compensation awarded under the relevant heads

The court held

The Court answered the enhancement issue in the affirmative and partly allowed the appeal.

It also directed

It enhanced the total compensation from ₹33,74,289 to ₹43,05,000, with interest at 6% per annum from the date of the claim petition until realization, but denied interest on the enhanced amount for the period of delay.

The insurer was directed to deposit the compensation and accrued interest before the Tribunal within eight weeks of receiving the certified copy of the judgment.

01Facts

On 1 September 2020, the appellant was driving a Tata Ace when it collided with a JCB near Talur Railway Gate.

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He sustained injuries resulting in the amputation of both legs below the knee.

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He claimed compensation, alleging that he worked as a driver and earned ₹20,000 per month.

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The Tribunal assessed his monthly income at ₹14,750 and awarded total compensation of ₹33,74,289, including compensation for loss of future earning capacity.

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The claimant appealed, seeking enhancement on the grounds that his income and disability had been undervalued and that compensation under several heads was inadequate.

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02Issues

i.1. Whether the appellant was entitled to enhanced compensation, including on account of his income, disability, and the compensation awarded under the relevant heads

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ii.2. What order should follow from the Court’s determination of the enhancement issue

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03Law Applied

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

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The Court applied the Karnataka Legal Services Authority’s notional-income guidelines, under which the monthly income for an accident in 2020 was ₹13,750.

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Relying on National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, it added 40% of income for future prospects.

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The Court used a multiplier of 17 for the appellant, whom it treated as 28 years old at the time of the accident, and assessed future loss of earnings by applying the multiplier to the annual income inclusive of future prospects.

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

Motor Vehicles Act, 1988 Section 173

04Reasoning

The Court found no material evidence establishing the appellant’s claimed income of ₹20,000 per month and therefore adopted the applicable notional income of ₹13,750.

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It treated the appellant’s disability as 100% and, applying the 40% addition for future prospects and a multiplier of 17, assessed loss of future earnings at ₹39,27,000.

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Considering the injuries and the time required for recovery, it awarded ₹78,000 for loss of income during the laid-up period and incidental expenses; it also increased compensation for pain and suffering and loss of amenities to ₹1,00,000 each.

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Although the cost of artificial limbs was not documented, the Court considered the appellant’s circumstances and awarded ₹1,00,000 under medical expenses.

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05Holding

The Court answered the enhancement issue in the affirmative and partly allowed the appeal.

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The insurer was directed to deposit the compensation and accrued interest before the Tribunal within eight weeks of receiving the certified copy of the judgment.

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LawLens.Karnataka High Court

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