Case Note & Summary
The appeal arises from a judgment and award dated 27.11.2010 passed by the Motor Accident Claims Tribunal, Hiriyur, in MVC No.78/2009. The claimant, Durugamma, a minor aged 10 years, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for injuries sustained in a road traffic accident on 03.08.2008. While she was walking with her father on Maradihally to Gollarahatty road, an auto rickshaw bearing registration No.KA-16/A-5286 driven by S.G.Naresh (respondent No.1) hit her, causing grievous injuries. The Tribunal awarded total compensation of Rs.69,100/- with interest at 6% per annum, but absolved the insurer (respondent No.3) from liability on the ground that the driver did not possess a valid driving license. The claimant appealed seeking enhancement of compensation and also challenging the exoneration of the insurer. The High Court considered the evidence, including the wound certificate, disability certificate, and the fact that the claimant was a minor. The court noted that the Tribunal had awarded Rs.20,000/- for pain and suffering, Rs.15,000/- for medical expenses, Rs.10,000/- for loss of amenities, Rs.10,000/- for loss of income during treatment, and Rs.14,100/- for future medical expenses. The High Court found that the compensation for loss of future earning capacity was not properly assessed. Applying the multiplier method, the court took the notional income of the minor as Rs.15,000/- per annum (as per the Second Schedule), applied multiplier 15, and assessed 15% permanent disability, resulting in Rs.33,750/- for loss of future earning capacity. The court also enhanced compensation for pain and suffering to Rs.30,000/-, loss of amenities to Rs.20,000/-, and awarded Rs.10,000/- for loss of income during treatment, Rs.15,000/- for medical expenses, and Rs.14,100/- for future medical expenses, totaling Rs.1,22,850/-. However, the court rounded it to Rs.1,50,000/- considering the overall circumstances. Regarding the insurer's liability, the court held that the insurer is liable to pay the compensation to the third party and then recover the same from the owner, following the principle in National Insurance Co. Ltd. v. Swaran Singh. The appeal was allowed in part, enhancing compensation to Rs.1,50,000/- with interest at 6% per annum from the date of petition till deposit, and the insurer was directed to pay and recover.
Headnote
A) Motor Accident Claims - Compensation for Minor - Loss of Future Earning Capacity - Motor Vehicles Act, 1988, Section 166 - The claimant, a minor aged 10 years, sustained grievous injuries in a road accident. The Tribunal awarded Rs.69,100/-. The High Court enhanced compensation to Rs.1,50,000/- by applying a notional income of Rs.15,000/- per annum and multiplier of 15, considering the permanent disability of 15% assessed by the doctor. Held that for minors, notional income can be taken as Rs.15,000/- per annum as per Second Schedule to the Act (Paras 8-10). B) Motor Accident Claims - Liability of Insurer - Breach of Policy Condition - Motor Vehicles Act, 1988, Section 149 - The offending vehicle was driven by a person without a valid driving license. The Tribunal absolved the insurer. The High Court upheld the insurer's liability to pay and recover from the owner, following the principle that the insurer must pay third-party compensation and then recover from the insured. Held that the insurer is liable to pay compensation to the claimant and recover the same from the owner (Para 11).
Issue of Consideration
Whether the compensation awarded by the Tribunal is just and proper and whether the insurer is liable to pay compensation despite the driver not possessing a valid driving license.
Final Decision
Appeal allowed in part. Compensation enhanced from Rs.69,100/- to Rs.1,50,000/- with interest at 6% per annum from the date of petition till deposit. The insurer is directed to pay the compensation and recover the same from the owner of the vehicle.
Law Points
- Compensation for injuries to minors
- multiplier method for loss of future earning capacity
- notional income for minors
- contributory negligence
- liability of insurer when vehicle is driven without valid driving license
