Karnataka High Court Employment and Labour Law Insurance Law

Karnataka HC Raises Injured Tempo-Traveller Driver’s Compensation To Rs 7.51 Lakh, Increasing Disability Assessment From 25% To 40%

By LawLens Team · Editorial and Research TeamDecided September 09, 2026Published 30 October 2026 at 3:31 pm IST2 min read

The LawLens card for this judgment

In brief

The question

1. Whether the claimant’s compensation for loss of earning capacity should be recalculated on the basis of 40% disability rather than the 25% assessed by the Commissioner.

The court held

The appeal was allowed in part.

It also directed

The Court modified the award from Rs.5,56,338 to Rs.7,51,373.

It directed that the compensation carry interest at 6% per annum from the date of the petition until realization, except for the delayed period of 281 days, and ordered the Insurance Company to deposit the amount within six weeks of receiving the certified judgment.

The Tribunal was directed to release the amount to the claimant upon proper identification.

01Facts

The claimant, a tempo-traveller driver, sustained grievous injuries when his vehicle collided with a stationary lorry while travelling from Bengaluru to Belgaum on 5 May 2017.

pp. 3–4

He claimed that he earned Rs.25,000 per month plus daily bata and sought compensation for his injuries and medical expenses.

pp. 3–4

The Commissioner assessed his notional monthly income at Rs.9,000 and awarded Rs.5,56,338, including compensation for loss of earning capacity and medical expenses.

p. 4, 6

The claimant appealed under Section 30(1) of the Employees’ Compensation Act, seeking enhancement, including recognition of greater disability.

p. 2

02Issues

i.1. Whether the claimant’s compensation for loss of earning capacity should be recalculated on the basis of 40% disability rather than the 25% assessed by the Commissioner.

p. 5

ii.2. Whether the award for future medical expenses should be enhanced in light of the increased disability.

p. 5

03Law Applied

The appeal was brought under Section 30(1) of the Employees’ Compensation Act.

p. 2

In reassessing compensation, the Court applied the wage-and-factor calculation used in the award, multiplying the monthly wage after the applicable percentage adjustment by the disability percentage and the age factor of 209.92.

p. 5

Provisions in the judgment · 1

Employee Section 30

04Reasoning

On reviewing the medical records and the parties’ submissions, the Court considered 40% disability appropriate in place of the 25% used by the Commissioner.

p. 5

It retained the monthly income of Rs.9,000, applied the calculation “9,000 × 60% × 40% × 209.92,” and reassessed loss of earning capacity at Rs.4,53,427.

pp. 5–6

It also considered the increased disability sufficient to raise future medical expenses from Rs.35,000 to Rs.60,000, while leaving reimbursement of past medical expenses unchanged at Rs.2,37,946.

pp. 5–6