Case Note & Summary
The case involves a motor accident claim arising from an accident that occurred on 18.12.2015 involving a Bolero goods vehicle bearing No. KA-16-B-5664. The claimant, Ismail @ Ismail Khan, a coolie aged about 47 years, sustained grievous injuries including fracture of the right femur and was treated at McGann Hospital, Shivamogga. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Principal Senior Civil Judge & AMACT-6, Shivamogga, seeking compensation of Rs.10,00,000/-. The Tribunal, by judgment and award dated 05.09.2018 in MVC No.245/2016, awarded Rs.4,81,600/- with interest at 6% p.a. from the date of petition till payment. The insurance company, Reliance General Insurance Company Ltd., filed MFA No.9192/2018 challenging the award on the ground that the compensation was excessive. The claimant filed MFA No.8766/2018 seeking enhancement of compensation. The insurance company also filed MFA No.9193/2018 and the claimant filed MFA CROB No.88/2021. All these appeals were clubbed and heard together. The main legal issues were the assessment of permanent disability, loss of future income, and the multiplier to be applied. The court considered the evidence including the disability certificate showing 30% permanent disability to the whole body. The court held that the claimant is entitled to compensation for loss of future income by applying a multiplier of 13 (as per Sarla Verma case) and notional income of Rs.9,000/- per month (as per the guidelines for accident victims). The court calculated loss of future income as Rs.9,000 x 12 x 13 x 30% = Rs.4,21,200/-. The court also awarded Rs.50,000/- for pain and suffering, Rs.30,000/- for loss of amenities, Rs.25,000/- for medical expenses, Rs.10,000/- for conveyance and nourishment, and Rs.5,000/- for loss of income during treatment. The total compensation was enhanced to Rs.5,41,200/-. The court directed the insurance company to pay the enhanced amount with interest at 6% p.a. from the date of petition. The insurance company's appeal was partly allowed, and the claimant's cross-appeal was allowed in part.
Headnote
A) Motor Accident Claims - Permanent Disability - Loss of Future Income - Assessment of Compensation - The claimant, a coolie aged 47, suffered 30% permanent disability to the whole body due to a road accident - The Tribunal awarded Rs.4,81,600/- - On appeal, the High Court enhanced the compensation by applying a multiplier of 13 and notional income of Rs.9,000/- per month, holding that the claimant is entitled to Rs.4,21,200/- towards loss of future income - The court also awarded additional amounts for pain and suffering, loss of amenities, and medical expenses - The insurance company's appeal was partly allowed, and the claimant's cross-appeal was allowed in part (Paras 1-10).
Issue of Consideration
Whether the compensation awarded by the Tribunal for permanent disability and loss of future income is just and proper, and whether the insurance company is liable to pay the enhanced compensation.
Final Decision
The appeals are partly allowed. The compensation is enhanced from Rs.4,81,600/- to Rs.5,41,200/-. The insurance company is directed to pay the enhanced amount with interest at 6% p.a. from the date of petition till payment. The insurance company's appeal is partly allowed, and the claimant's cross-appeal is allowed in part.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for permanent disability
- Loss of future income
- Multiplier method
- Notional income assessment
