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2026 Supreme(AP) 100

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
A.HARI HARANADHA SARMA, J.
Somu Damodara Rao, S/o. Krishna - Appellant
Versus
P. Adinarayana, S/o. Ramayya – Respondent 
Motor Accident Civil Miscellaneous Appeal No. 354 of 2014
Decided On : 11-02-2026

Advocates Appeared:
For the Appellant : G. Sai Narayana Rao
For the Respondent: Sreemannarayana Vattikuti

Compensation for bodily injury in motor vehicle accidents must be just and reasonable, considering future earning capacity and socio-economic context, exceeding original claims if warranted.

Headnote:(A) Motor Vehicles Act, 1988 - Section 163-A - Motor accident - Appeal for enhancement of compensation from Rs.1,91,000/- to Rs.5,00,000/- - The tribunal awarded compensation of Rs.1,91,000/- based on presented evidence, including medical documentation and witness testimony, but failed to account for future earning capacity resulting from the claimant's permanent disability - The court emphasized the need for compensation to reflect just principles, stating that 'the aim of the law is to restore what is lost and to undo the wrong' (Para 30).

(B) The court noted precedential guidance from the Supreme Court regarding compensation methodologies, indicating that 'the compensation shall adequately consider the socio-economic context of the year 2007 and may exceed the claimed amount' (Para 26).

(C) The court established that the inability to pursue the claimant's profession as a driver warrants higher compensation, ultimately adjusting the awarded amount to Rs.9,81,800/- with 7.5% interest (Para 31).

(D) The main issues addressed included the adequacy of awarded compensation and the extent of claimant's permanent disability while considering the legal principle that compensation must restore, as far as possible, the victim's position prior to injury (Para 29).

Findings of Court:
The initial award was deemed inadequate when such factors were evaluated collectively, leading to the enhancement of compensation (Para 30-31).

Result: Appeals allowed; compensation modified to Rs.9,81,800/- with interest.

Table of Content
1. appeal directed against mact compensation order (Para 1 , 2 , 3)
2. details of the claimant's accident and injury (Para 5)

JUDGMENT :

A.HARI HARANADHA SARMA, J.

Introductory:

1. This appeal is directed against the order and decree dated 28.07.2011 passed in M.O.P.No.195 of 2009 by the Chairman, Motor Accidents Claims Tribunal-cum-Additional District Judge, Vizianagaram (for short “the MACT”).

The claimant before the learned MACT is the appellant herein.

2. Feeling aggrieved and dissatisfied by the quantum of compensation of Rs.1,91,000/- awarded as against the claim made for Rs.5,00,000/-, the present appeal is filed.

3. Respondent Nos.1 and 2 herein are the owner and the insurer of the Auto bearing Registration No.AP 35 U 5822 (hereinafter referred to as “the offending vehicle”).

Case of the Claimant:

4(i). On 21.07.2007, at about 01:30 p.m., when the petitioner / claimant was driving the offending vehicle which was loaded with chairs and when he reached near Gayatri College, he met with an accident. As a result of the said accident, the claimant sustained fracture of his right hand and other injuries all over his body. After the accident he was moved to Government Headquarters Hospital, Vizianagaram and from there he was shifted to KGH, Visakhapatnam for better treatment. Thereafter, the petitioner was again admitted in Government Hospital, Vizianagaram and his right hand was amputated.

(ii). As on the date of accident, the petitioner was hale and healthy and was working as driver under respondent No.1 and was earning Rs.150/- per day. As he sustained grievous injuries and his right hand was amputated, he spent a considerable amount for his treatment, suffered a lot and is deprived of doing his normal work.

5. Respondent No.1, the owner of the offending vehicle, remained ex parte before the learned MACT.

Case of the Respondent-Insurance Company:-

6(i). Age, occupation and income of the claimant and the nature and effect of injuries, particularly contributing for the loss of income to the claimant, shall be strictly proved.

(ii). Further, the claimant shall also prove the insurance coverage in respect of the offending vehicle with the respondent Insurance Company and compliance with the conditions of policy, including a valid and effective driving licence to the petitioner, as well as the fitness and permit of the vehicle to run on the road at relevant time.

(iii). It is also the case of the respondent Insurance Company that since the petitioner was negligent, he is not entitled to compensation and respondent No.2 Insurance Company is not liable.

7. On the strength of pleadings, the following issues were settled for trial by the learned MACT:

(i). Whether the petitioner sustained injuries in the pleaded accident that occurred due to the rash and negligent driving of the vehicle (Auto) bearing No.AP 35 U 5822 by its driver?

(ii). Whether the petitioner is entitled to compensation and if so from which of the respondents?

(iii). To what relief?

Additional issue:

(i). Whether the pleaded accident was occurred resulting in injuries to the petitioner due to his involvement in a motor vehicle accident involving the auto bearing registration No.AP 35 U 5822 while it was in use in a public place?

Evidence before the learned MACT:

8(i). During trial, the claimant has taken witness stand as P.W.1 and one Dr. M. Sankara Rao examined as P.W.2.

(ii). Petitioner relied on Ex.A1-GD Entry containing the statement of P.W.1, Ex.A2-medical intimation, Ex.A3-reciept of complaint, Ex.A4-O.P. Certificate/ticket, Ex.A5-discharge summary, Ex.A6-medical bills, Ex.A7-Disability Certificate, Ex.A8-copy of the licence of the claimant, Ex.X1-case sheet and Ex.X2-latest X-ray

Findings of the learned MACT:

9(i). The pleaded accident occurred resulting in injuries to the petitioner while the offending vehicle was in use in a public place.

(ii). P.W.2, Dr. M. Sankara Rao, deposed that he was working as Civil Assistant Surgeon, Government Hospital, Vizianagaram and tha

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