Madras HC Raises Injured Driver’s Compensation To ₹7.39 Lakh, Including Six Months’ Lost Income And ₹1.6 Lakh For Disability

The claimant, a 33-year-old professional driver, sustained multiple injuries in a motorcycle–car collision on 8 August 2020.

The Motor Accident Claims Tribunal found the car driver negligent and directed the insurer to pay compensation, with liberty to recover it from the vehicle owner because the driver lacked a valid licence.

The Tribunal assessed the claimant’s permanent disability at 16% and awarded Rs.4,83,626, rounded to Rs.4,83,700. The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement.

The High Court noted that the claimant had been treated as an inpatient for five days and that the Medical Board assessed 16% permanent disability.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, and the underlying claim was made under Section 166.

The Court applied the percentage method to assess permanent-disability compensation because there was no evidence establishing functional disability or actual loss of earning capacity.

It assessed the other compensation heads having regard to the claimant’s injuries, treatment, age, occupation and recovery period.

The judgment cites no precedent.

In the absence of evidence of functional disability or actual loss of earning capacity, the Court retained the percentage method but found the Tribunal’s rate of Rs.5,000 per percentage inadequate given the 2020 accident, the claimant’s age and his occupation as a driver; it increased the rate to Rs.10,000 per percentage, producing Rs.1,60,000 for 16% disability.

The Court also found the Tribunal’s notional monthly income of Rs.10,000 and two-month recovery period inadequate, fixing monthly income at Rs.18,000 and allowing six months’ loss of income, or Rs.1,08,000.

Considering the injuries and treatment, it enhanced future medical expenses, pain and suffering, transportation, nourishment, attendant charges and loss of amenities; it made no further award for mental agony.

The insurer was directed to deposit the amount, less any sum already deposited, within six weeks, with liberty to recover it from the vehicle owner.

The claimant was permitted to withdraw the amount with interest and costs, subject to the Tribunal’s directions on disbursement.