Madras HC Raises Injured Petrol Bunk Worker’s Compensation To ₹6.74 Lakh, Fixing Notional Income At ₹15,000 A Month

The appellant sustained multiple fractures in a motorcycle–lorry collision on 15 September 2019. He claimed that he was a petrol-bunk worker earning ₹20,000 per month.

The Motor Accident Claims Tribunal found the lorry driver negligent and awarded ₹4,56,498, assessing the appellant’s loss of earning capacity at 15%, fixing monthly income at ₹8,000, and applying a multiplier of 16. On appeal under Section 173 of the Motor Vehicles Act, 1988, the claimant sought enhancement, challenging the income and functional-disability assessments.

Section 166 of the Motor Vehicles Act, 1988 provides the basis for a claim for compensation arising from a motor accident, while Section 173 provides for an appeal against the Tribunal’s award.

In assessing compensation for loss of earning capacity, the multiplier method may be applied; the Tribunal and High Court referred to the multiplier of 16 under Sarla Verma.

The percentage of medical disability is not necessarily the same as the percentage of loss of earning capacity; the latter is assessed in light of the claimant’s injuries and occupation.

The Court accepted that the appellant had sustained serious fractures and that the Medical Board assessed his partial permanent disability at 40%, but considered the Tribunal’s 15% assessment of loss of earning capacity reasonable in light of his occupation as a petrol-bunk worker.

It declined to accept the claimed income of ₹20,000 per month because the appellant had not examined his employer or produced documentary proof. However, it found the Tribunal’s notional income of ₹8,000 too low for a 32-year-old claimant injured in 2019 and fixed it at ₹15,000 per month.

Applying the multiplier of 16 and 15% loss of earning capacity, it recalculated that head at ₹4,32,000 and increased pain-and-suffering and extra-nourishment awards to ₹10,000 each.

The insurer was directed to deposit the enhanced amount, less any amount already deposited, within six weeks; withdrawal was permitted subject to the Tribunal’s process and payment of the requisite court fee.