Case Note & Summary
The case arises from a motor vehicle accident that occurred on 15-01-2012 involving two lorries. The claimant, H. Basavanagouda @ Basava, was working as a cleaner on lorry bearing registration No.KA-34/6448. While the lorry was parked on the roadside near B.Belagal village, another lorry bearing registration No.KA-35/921 dashed against it from behind, causing grievous injuries to the claimant. He sustained fractures to his right leg and was hospitalized. The claimant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accidents Claims Tribunal-IX, Bellary, seeking compensation of Rs.5,00,000/-. The Tribunal, by judgment and award dated 05-11-2012 in MVC No.358/2012, awarded a total compensation of Rs.1,50,000/- with interest at 6% per annum. Dissatisfied with the quantum, the claimant filed MFA No.23417/2013 seeking enhancement. The Insurance Company (ICICI Lombard) filed MFA No.20844/2013 challenging its liability. The High Court of Karnataka at Dharwad, by a common judgment dated 29-10-2018, allowed the claimant's appeal and dismissed the Insurance Company's appeal. The Court held that the claimant, being a cleaner employed on the lorry, was not a gratuitous passenger and was covered under the insurance policy. On quantum, the Court assessed the claimant's income at Rs.6,000/- per month, applied a multiplier of 18, and awarded Rs.1,29,600/- for loss of future income due to 30% disability. Additionally, Rs.50,000/- was awarded for pain and suffering, Rs.25,000/- for medical expenses, Rs.25,000/- for conveyance and nourishment, and Rs.20,000/- for loss of amenities. The total compensation was enhanced to Rs.3,50,000/- with interest at 6% per annum from the date of petition till realization. The Insurance Company was directed to deposit the enhanced amount within six weeks.
Headnote
A) Motor Accident Claims - Compensation for Injuries - Assessment of Disability - The claimant, a cleaner, sustained grievous injuries in a road accident resulting in 30% permanent disability to the right lower limb - Tribunal awarded Rs.1,50,000/- which was enhanced by the High Court to Rs.3,50,000/- considering loss of future income, pain and suffering, medical expenses, and conveyance - Held that compensation must be just and reasonable, not a bonanza (Paras 10-15). B) Motor Accident Claims - Liability of Insurance Company - The Insurance Company contended that the claimant was a gratuitous passenger in a goods vehicle - However, the claimant was a cleaner employed on the lorry and was traveling in the course of employment - Held that the Insurance Company is liable to indemnify the owner as the claimant was an employee covered under the policy (Paras 5-9).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper and whether the Insurance Company is liable to pay the enhanced compensation.
Final Decision
The High Court allowed MFA No.23417/2013 filed by the claimant and enhanced the compensation from Rs.1,50,000/- to Rs.3,50,000/- with interest at 6% per annum from the date of petition till realization. MFA No.20844/2013 filed by the Insurance Company was dismissed. The Insurance Company was directed to deposit the enhanced compensation within six weeks.
Law Points
- Motor Vehicles Act
- 1988
- Section 173(1)
- Compensation for injuries
- Loss of future income
- Pain and suffering
- Medical expenses
- Conveyance and nourishment
