Liability of owner and insurer for accidents during the use of a vehicle, determination of compensation amount based on the deceased's earning potential and age

K. Sreedhar Rao, J.—A lorry loaded with wooden logs came to the saw-mill for unloading. The deceased in M.V.C. No. 430/1990 was working in the saw-mill. The lorry had also carried the loaders in the lorry for the purpose of unloading.

2. The lorry loaded with wooden logs was parked on a down-gradient surface for the purpose of unloading. The rope tied as a grip to the wooden logs for safety was untied by one of the loaders negligently. A heavy wooden log fell on the deceased who was near the lorry for the purpose of unloading. The mother of the deceased is the petitioner.

3. The deceased apart from being an employee, is also a third party in law since he was not an inmate of the lorry at the time of accident. The accident occurred when the lorry was in use. Therefore, the owner and insurer of the lorry are liable to pay the compensation. The dismissal of the claim petition is bad in law.

4. The compensation as per multiplier system would be less than Rs. 1,50,000. This Court in the case of Smt. Puttamma v. Sri D.V. Krishnappa II, (1999) ACC 491 : 1999 (4) K.C.C.R. 2493, has held that in case of death of non-earning minor the minimum compensation payable shall be Rs. 1,50,000. The deceased being an able-bodied adolescent aged about 25 years. The compensation less than Rs. 1,50,000 would be improper. Hence, the petitioner is entitled to a compensation of Rs. 1,50,000 with interest at 6% per annum from the date of petition till payment. The second respondent-insurer shall pay the compensation. Any amount paid under Section 140 of the Motor Vehicles Act, shall be deducted from the award amount.

5. Accordingly, the appeal is allowed.