Karnataka HC Raises Pillion Rider’s Award to ₹5.59 Lakh, Directs Insurer to Pay First and Recover From Unlicensed Owner-Rider

The appellant, a pillion rider injured in a collision between two motorcycles on 25 April 2020, claimed compensation for his injuries and resulting disability.

The Tribunal awarded Rs.4,55,880.50 with 7% interest, but dismissed the claim against the insurer after finding that the rider of the offending motorcycle did not hold a valid and effective driving licence; it directed the vehicle’s owner to pay.

The claimant appealed, seeking enhanced compensation and a direction that the insurer pay in the first instance.

Under Section 149(2)(a)(ii) of the Motor Vehicles Act, 1988, an insurer may raise the defence that the vehicle was driven by a person not duly licensed.

A breach of the policy condition may absolve the insurer from ultimate liability; however, the court may direct the insurer to satisfy the award and recover the amount from the insured owner (“pay and recover”).

The Court also relied on *Shamanna v. Oriental Insurance Co. Ltd.*, (2018) 9 SCC 650, and *Singh Ram v. Nirmala*, Civil Appeal No.2103/2018, as authorities cited on liability.

For assessment of compensation, it applied the multiplier method in *Sarla Verma v. Delhi Transport Corporation*, 2009 ACJ 1298, and used the Karnataka Legal Services Authority guidelines to assess the appellant’s income.

The Court accepted the Tribunal’s monthly income assessment of Rs.13,750 and, applying multiplier 11 to the appellant’s age of 54, assessed whole-body functional disability at 20%, resulting in Rs.3,63,000 for loss of future income.

It enhanced compensation for pain and suffering, loss of amenities and laid-up-period income, while leaving the awards for medical expenses, future medical expenses, and diet, nourishment, conveyance and attendant charges unchanged; the resulting total was Rs.5,58,981.

As the evidence established that the rider lacked an effective driving licence, the insurer had a policy-breach defence. Nevertheless, relying on *Rama Bai*, the Court held it appropriate to require the insurer to satisfy the award first and recover from the owner.

The compensation was enhanced from Rs.4,55,880 to Rs.5,58,981.

The enhanced compensation was directed to carry interest at 6% per annum from the date of the petition until payment.

The owner and insurer were held jointly and severally liable, with the insurer directed to deposit the compensation and accrued interest before the Tribunal within six weeks of receiving the certified judgment and thereafter recover the amount from the owner.