Karnataka HC Raises Injured Lorry Cleaner’s Compensation To Rs 5 Lakh, Assessing 12% Disability For Future Income Loss

On 27 October 2010, the claimant, then aged 18, was travelling as a cleaner in a lorry when it collided with another lorry on NH-46.

He sustained fractures of the right femur and right clavicle and claimed compensation under Section 166 of the Motor Vehicles Act, 1988.

The Tribunal awarded him Rs. 4,20,000 with interest at 8% per annum against the insurer of the lorry in which he was travelling.

He appealed, seeking enhancement of compensation.

The appeal against the fourth respondent had been dismissed earlier.

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

In assessing future loss of income, the Court relied on Erudhaya Priya v. State Express Transport Corporation Ltd., 2020 SCC OnLine SC 601, for adding future prospects to income.

The Court assessed the claimant’s notional monthly income by reference to Rs. 5,500 for the year 2010, applied a 40% addition for future prospects, a multiplier of 18, and 12% whole-body disability.

For fracture injuries, it applied an assessment of Rs. 40,000 for a fracture of a structural bone, with Rs. 10,000 for an additional fracture.

The Court accepted the Tribunal’s finding that the claimant suffered loss of earning capacity, but found that the Tribunal had used an unjustified income figure and had not added future prospects.

It therefore recalculated future loss of income as (Rs. 5,500 + 40%) × 12 × 18 × 12%, or Rs. 1,99,584.

Given the two fractures, it increased compensation for pain and suffering to Rs. 50,000.

It left undisturbed the awards for laid-up-period income, incidental expenses, medical expenses, and future medical expenses, finding them justified on the evidence.

It also directed that the Rs. 50,000 awarded for physical impairment be adjusted towards marriage prospects.

The claimant’s compensation was enhanced to Rs. 5,00,000, with interest at 8% per annum from the date of the petition until deposit, excluding the 111-day delay in filing the appeal.

The insurer was directed to deposit the balance within six weeks, and the compensation with interest was ordered released to the claimant.