Case Note & Summary
The appellant, Rajkumar, filed an appeal under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded by the Fast Track-II and Additional MACT, Bidar camp at Bhalki, in MVC No.488/2010. The accident occurred on 11.05.2010 when the appellant was traveling in a Maxicab that was hit by a rashly driven tipper, causing grievous injuries. The Tribunal awarded Rs.3,24,500/- with 6% interest. The appellant contended that the compensation under loss of future earning capacity was inadequately assessed. The High Court found that the Tribunal had not properly considered the permanent disability of 30% to the whole body as per the wound certificate (Ex.P4). The court recalculated the compensation using the multiplier method, taking the appellant's age (30 years) and income (Rs.4,500 per month as a milk vendor and agriculturist). Applying a multiplier of 17 and 30% disability, the loss of future earning capacity was assessed at Rs.2,75,400/-. The court also enhanced compensation for pain and suffering, medical expenses, and other heads, totaling Rs.15,25,000/- with 12% interest from the date of petition. The appeal was allowed, modifying the award accordingly.
Headnote
A) Motor Accident Compensation - Loss of Future Earning Capacity - Assessment of Disability - The Tribunal erred in assessing compensation under loss of future earning capacity by not properly considering the permanent disability of 30% to the whole body as per medical evidence - Held that the compensation should be calculated based on the multiplier method taking into account the age and income of the claimant (Paras 4-6).
Issue of Consideration
Whether the Tribunal erred in assessing compensation under the head of loss of future earning capacity and whether the claimant is entitled to enhanced compensation.
Final Decision
Appeal allowed. The judgment and award dated 19.01.2012 in MVC No.488/2010 is modified. The compensation is enhanced from Rs.3,24,500/- to Rs.15,25,000/- with interest at 12% per annum from the date of petition till payment.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for loss of future earning capacity
- Assessment of disability
- Multiplier method




