Sugarcane Loader Killed Between Trailers: Karnataka HC Keeps Insurer Liable, Revises Family’s Compensation To ₹19.53 Lakh

On 27 February 2014, Halappa Sannalaxman Naikwadi was fatally injured after being caught between two trailers attached to a tractor while proceeding near Kankanwadi-Katakbhavi Road.

His wife, four children and parents sought compensation before the MACT.

The Tribunal awarded ₹23,38,000 with interest at 9% per annum and held the owner and insurer jointly and severally liable.

The insurer appealed, disputing coverage and the amount of compensation; the claimants filed cross-objections seeking enhancement.

Section 147 of the Motor Vehicles Act was considered in light of National Insurance Company Ltd. v. Shri Maruthi, in which the Court treated a tractor-trailer combination used for agricultural operations as a goods carriage and held that the claim was covered under the policy and Section 147.

For compensation, the Court applied Sarla Verma v. Delhi Transport Corporation on the multiplier and deduction for personal expenses, and National Insurance Company Ltd. v. Pranay Sethi on future prospects and conventional heads of compensation.

It relied on Ms. Joyeeta Bose v. Venkateshan V. in reducing the interest rate to 6% per annum.

The appeals were brought under Section 173(1) of the Motor Vehicles Act, and the claimants’ cross-objection under Order 41 Rule 22 of the Code of Civil Procedure.

The deceased had been engaged in loading and unloading sugarcane, and the insurer relied on the policy’s exclusion of passengers and the tractor’s one-person seating capacity.

The Court nevertheless upheld the insurer’s liability, finding the reasoning in Maruthi applicable to the facts and holding that the claim was covered.

On quantum, it assessed the deceased’s monthly income at ₹7,500 under the KSLSA chart for 2014, added 40% for future prospects, deducted one-fifth for personal expenses and applied a multiplier of 16, producing dependency compensation of ₹16,12,800.

It then assessed consortium, estate and funeral expenses, fixing total compensation at ₹19,53,800.

It reduced interest to 6% per annum.

The Tribunal’s award was modified: compensation was fixed at ₹19,53,800, with interest at 6% per annum from the petition date until realization.

The insurer was directed to deposit the amount, after crediting any sum already deposited, within six weeks; any excess deposited was to be returned to the insurer.