Karnataka HC Raises Injured Woman’s Award To ₹2.52 Lakh, Holds Bike Owner Liable As No Insurance Policy Was Proved

Puttamma claimed compensation under Section 166 of the Motor Vehicles Act, 1988, for injuries sustained when motorcycle No. KA-05-W-5230 hit her on 25 April 2012.

The Tribunal found the rider negligent and awarded ₹1,00,500 with interest at 6% per annum, holding the owner and insurer jointly and severally liable.

Puttamma appealed for enhancement; the insurer appealed against the finding that it was liable to indemnify the owner.

The claimant produced a photocopy of a proposal form dated 30 April 2012, rather than an insurance policy, while the insurer had disputed its coverage of the motorcycle.

Under Sections 166 and 173 of the Motor Vehicles Act, 1988, an injured person may claim compensation and an aggrieved party may appeal the Tribunal’s award.

The Court applied the principle in Oriental Insurance Co. Ltd. v. N.S. Devaraja, ILR 1997 Kar 1061, that an insurer’s failure to lead evidence does not, by itself, justify fastening liability on it where issuance of the policy is disputed; a party cannot be required to prove a negative.

It distinguished National Insurance Co. Ltd. v. Raju & Ors., [2018:KHC-K:330], which involved an alleged fake policy and a pay-and-recover direction.

For quantification, the Court assessed notional income, functional disability, multiplier, treatment-related expenses, future medical needs, loss of amenities and loss of income during recovery.

The claimant’s document was only a proposal form, dated five days after the accident, and did not establish that a policy covered the motorcycle on the accident date.

The owner’s assertion of coverage and the insurer’s failure to adduce evidence were insufficient to establish the insurer’s liability; the Court therefore allowed the insurer’s appeal.

On quantum, it adopted a monthly notional income of ₹7,000 for 2012, upheld 10% loss of earning capacity and applied a multiplier of 15, producing ₹1,26,000 for future loss of income.

It also increased or awarded amounts under other heads, including treatment-related expenses, future medical expenses, loss of amenities and income during the three-month recovery period.

The claimant’s appeal was allowed in part, and the Tribunal’s award was enhanced from ₹1,00,500 to ₹2,52,000, with interest at 6% per annum from the claim petition date until deposit; the amount deposited in the insurer’s appeal was ordered to be refunded to it.

Arithmetic note: The amounts listed under the compensation heads in paragraph 16 total ₹2,57,000, although the judgment states the total as ₹2,52,000.