Mason Hit By Mixer Lorry Gets Compensation Raised To ₹4.88 Lakh; Karnataka HC Directs Insurer To Pay Extra ₹85,400 And Recover From Owner

On 20 November 2016, the claimant, then aged about 52, was struck from behind by a concrete mixer lorry while walking on Yamalur Main Road, Bengaluru.

He sustained injuries and was hospitalised for four days.

The Tribunal found the driver negligent and awarded ₹4,03,100 with 9% interest, assessing monthly notional income at ₹7,500 and whole-body disability at 13%.

It placed liability on the vehicle owner because the lorry had no valid permit.

The claimant appealed seeking enhanced compensation and an order requiring the insurer to pay first and recover from the owner.

Section 166 of the Motor Vehicles Act, 1988 provides the basis for a claim for compensation arising from a motor-vehicle accident; Section 173(1) provides for an appeal against the Tribunal’s award.

Relying on National Insurance Co. Ltd. v. Swaran Singh, (2004) 3 SCC 297, and National Insurance Co. Ltd. v. Laxmi Narain Dhut, (2007) 3 SCC 700, as reiterated in Shamanna v. Divisional Manager, Oriental Insurance Co. Ltd., (2018) 9 SCC 650, the Court applied the principle that, in a third-party claim involving a breach of policy conditions, the insurer may be directed to pay the compensation and recover it from the insured owner.

For calculating loss of future income, the Court applied the claimant’s assessed monthly income, age-related multiplier and whole-body disability percentage.

The Court accepted the parties’ position that the applicable notional income for 2016 was ₹9,500 per month and, considering the injuries, increased whole-body disability from 13% to 15%.

Applying the multiplier of 11, it recalculated loss of future income at ₹1,88,100 and increased laid-up-period income to ₹28,500.

It also enhanced loss of amenities to ₹30,000, leaving the other Tribunal awards undisturbed; these changes brought total compensation to ₹4,88,500, an enhancement of ₹85,400.

On liability, the Court accepted the claimant’s submission under Shamanna and held that the insurer should pay the third-party compensation and recover it from the owner, notwithstanding the permit breach.

The award was modified to grant total compensation of ₹4,88,500 with interest at 9% per annum from the date of the claim petition until deposit.

The insurer was directed to deposit the enhanced compensation with applicable interest within eight weeks and was permitted to recover the amount from the insured owner in accordance with law.

The remaining part of the Tribunal’s award was left undisturbed, and no order as to costs was made.