Karnataka HC Raises Injured Contractor’s Compensation To ₹19.66 Lakh, Citing Persistent Brain-Fluid Leak Through Nose

The claimant, a contractor, sustained serious head injuries in a 9 October 2009 motorcycle accident.

The Motor Accident Claims Tribunal found the accident was caused by the offending vehicle and awarded ₹5,58,016 with interest at 6% per annum.

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

During the appeal, he adduced further medical bills and income-tax returns (ITRs).

The High Court considered the evidence concerning his income, disability, treatment and future medical needs.

The claim arose under Section 166 of the Motor Vehicles Act, 1988, and the appeal was brought under Section 173(1) of that Act.

For a self-employed claimant or person carrying on a business, the Court applied Rashmirekha Tripathy v. The Branch Manager (Legal Claims), Shriram General Insurance Co. Ltd., 2026 SCC OnLine SC 1256: income is assessed by averaging the ITR income for the preceding three years.

The Court excluded the ITR for the accident year because it was filed after the accident.

The remaining compensation assessment was based on the evidence of income, disability, treatment and expenses in the record.

The Court found the additional medical bills, totalling ₹9,66,101, supported by the evidence and not undermined in cross-examination, and awarded that sum as additional medical expenses.

It also awarded ₹1,00,000 for future medical expenses, given the evidence of continuing seizures and lifelong medication, despite the absence of detailed future-cost estimates.

Applying Rashmirekha Tripathy, it averaged the claimant’s ITR incomes for 2006–07 to 2008–09, deducted the applicable tax and assessed monthly income at ₹16,377.

It retained 15% functional disability, considering the claimant’s continued work as a contractor and renewal of his licence, and applied a multiplier of 15 to assess future loss of income at ₹4,42,179.

In view of the head injury, persistent leakage of fluid through the nose and repeated treatment, it enhanced pain-and-suffering compensation to ₹2,00,000, loss of amenities to ₹1,00,000, loss of income during six months’ treatment to ₹98,262, and attendant expenses to ₹60,000.

The Court held the claimant entitled to ₹19,66,542, with interest at 6% per annum from the date of the claim petition until deposit, excluding the 300-day delay in filing the appeal.

The insurer was directed to deposit the amount with interest within six weeks, after which it was to be released to the claimant.