IN THE HIGH COURT OF KARNATAKA AT BENGALURU (DHARWAD BENCH)
N.S. Sanjay Gowda, J.
Branch Manager National Insurance Co. Ltd. - Appellant
Versus
Nagaraj - Respondent
Miscellaneous First Appeal No. 24777 of 2012, 24778 of 2012; Miscellaneous First Appeal (Crob) No. 757 of 2013, 758 of 2013
Decided On : 16-07-2020
Liability - Insurance Company - The court dismissed the appeals filed by the Insurance Company, upholding the liability fastened on it due to the driver of the tractor being competent to drive it based on the unladen weight of the tractor and the type of license possessed by the driver. The court also enhanced the compensation awarded to the claimants based on the assessment of their monthly income and other factors.
Fact of the Case:
The insurance company appealed the liability fastened on it, while the claimants cross-objected the award passed by the Tribunal. Both appeals arose from the same accident and were heard together.
Finding of the Court:
The court dismissed the appeals filed by the Insurance Company, upheld the liability fastened on it, and enhanced the compensation awarded to the claimants.
Issues: The principal contention was the liability of the Insurance Company due to the type of license possessed by the driver of the tractor. The assessment of the claimants' income and the compensation awarded were also at issue.
Ratio Decidendi: The court relied on the judgment of the Apex Court in MUKUND DEWANGAN V/s ORIENTAL INSURANCE COMPANY LIMITED to uphold the liability of the Insurance Company. The court also considered the assessment of the claimants' income and compensation in line with the criteria used by the Legal Service Authority for determining compensation in motor accident cases.
Final Decision: The court dismissed the appeals filed by the Insurance Company, upheld the liability fastened on it, and enhanced the compensation awarded to the claimants.
JUDGMENT
N.S. Sanjay Gowda, J. - In both these appeals, the insurance company is in appeal challenging the liability fastened on it.
2. The claimants have also preferred the cross objections, being dissatisfied with the award, passed by the Tribunal.
3. Since both the claim petitions arise out of the same accident and out of a common judgment passed by the Tribunal, these appeals are taken up and heard together.
4. The Tribunal has awarded a sum of Rs.2,40,000/- to Nagaraj, the claimant in MVC No.511/2008, and a sum of Rs.1,65,000/- to Mahantesh, the claimant in MVC No.514/2008.
5. The principal contention of the Insurance Company in these appeals is that the driver of the tractor possessed only a license to drive a LMV and therefore they could not be fastened with the liability.
6. In view of the judgment of the Apex Court in the case of MUKUND DEWANGAN V/s ORIENTAL INSURANCE COMPANY LIMITED, (2017) AIR SC 3668 , the award of the tribunal fastening the liability on the Insurance Company cannot be found fault with. Admittedly, the unladen weight of the tractor is less than 7,500 Kgs and therefore the driver of the tractor who, admittedly, possessed an LMV would have also been competent to drive the tractor. Consequently, the appeals filed by the Insurance Company lack merit and they are accordingly dismissed.
7. Insofar as the cross-objections are concerned, the Tribunal while determining the income of the claimants has taken a notional income at Rs.3,000/- per month for both the claimants. The said assessment has been made on the premise that no evidence was adduced to establish their monthly income.
8. In my view, in cases where there is no evidence to assess the monthly income, it would be prudent to adopt the monthly income as assessed by the Legal Service Authority for determining the compensation in the Lok Adalath cases. As per the said criteria, in respect of motor accident of the year 2008 the Legal Service Authority has determined the monthly income for victims of a motor vehicle accident at Rs.4,250/-. If that is taken as the monthly income of the claimants, the compensation is liable to be enhanced.
9. The assessment of disability by the Tribunal is not under serious challenge and therefore the same is accepted. In my view, the amounts awarded towards pain and suffering requires to be enhanced and so also the sums awarded towards future medical expenses.
10. Consequently, the award of the Tribunal is modified by considering the income of the petitioner at Rs.4,250/- instead of Rs.3,000/-. This would result in the following compensation to be awarded to the Cross objector in MFA Crob.No.757/2013 in MFA 24777/2012 as under;
| Nos. | Particulars | Amount |
| 1. | Pain and Suffering | Rs.35,000/- |
| 2. | Loss of future earning capacity | Rs.1,37,700/- |
| 3. | Medical expenses | Rs.80,200/- |
| 4. | Future medical expenses | Rs.20,000/- |
| 5. | Towards Mental Agony | Rs.25,000/- |
| 6. | Attendant charges | Rs.3,000/- |
|
| Total | Rs.3,09,000/- |
11. In respect of the MFA Crob.No.758/2013 in MFA No.24778/2012, the Cross objector would be entitled to the following heads as under:
| Nos. | Particulars | Amount |
| 1. | Pain and Suffering | Rs.15,000/- |
| 2. | Loss of future income | Rs.1,37,700/- |
| 3. | Medical expenses | Rs.31,101/- |
| 4. | Future medical expenses | Rs.15,000/- |
| 5. | Towards Mental Agony | Rs.25,000/- |
| 6. | Attendant charges | Rs.1,700/- |
|
| Total | Rs.2,25,501/- |
12. Thus the award of the Tribunal is modified to the extent stated above. Consequently, MFA Nos.24777/2012 and 24778/2012 are dismissed.
13. Accordingly, MFA Crob.No.757/2013 and 758/2013 are allowed in part.
14. The compensation awarded to the claim
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