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2025 Supreme(Mad) 5167

IN THE HIGH COURT OF JUDICATURE AT MADRAS
J.Nisha Banu, R.Sakthivel, JJ.
United India Insurance Co. Ltd. - Appellant
Versus
R.Yogesh - Respondent
CMA No.989 of 2022 CMP Nos.7337 and 7339 of 2022
Decided On : 29-04-2025

Advocates Appeared:
For the Appellant : Mr.S.Arunkumar
For the Respondent: Mr.S.Kaithamalai Kumaran

Negligence must be proven for liability in motor vehicle accidents, and future earnings potential can be factored into compensation calculations.

Headnote:(A) Motor Vehicles Act - Sections relating to compensation for personal injury and claims arising from motor vehicle accidents - The appeal was filed against the award of the Tribunal regarding compensation for injuries sustained in an accident - Key legal principle emphasizes the determination of negligence and liability of the insurance company where the first respondent was found negligent due to rash driving (Paras 11, 13, 15).

(B) Compensation for loss of earning capacity and medical expenses - The Tribunal awarded Rs.1,00,78,000/- as compensation, which was challenged for being excessive and lacking rational basis (Paras 9, 14, 18).

(C) The principle of considering future prospects in disability cases was established, indicating that 40% should be added for future prospects (Paras 15).

Facts of the case:
The petitioner was injured due to the collision caused by the first respondent whilst riding his two-wheeler. The petitioner, aged 25, was an apprentice earning Rs.45,000/- monthly. The Tribunal found both respondents liable, awarding Rs.1,00,78,000/- (Paras 1-6).

Findings of Court:
The Tribunal correctly attributed negligence to the first respondent but miscalculated the award regarding future earnings and excessive claims. The degree of disability and future medical expenses were upheld (Paras 11, 20).

Issues: The main issues were negligence attribution in the accident, adequacy of compensation awarded, and the application of future loss of earnings calculation (Paras 12, 19).

Ratio Decidendi: The court finds that the first respondent's negligence caused the accident, affirming the Tribunal's decision but modifying the award based on valid reasoning that addressed future prospects and expenditure concerns (Paras 11-15).

Result: Civil Miscellaneous Appeal is allowed in part, modifying the award (Para 20).

Table of Content
1. insurance company challenges tribunal award. (Para 1)
2. factual background of the accident and claims. (Para 3 , 4 , 5)
3. arguments regarding negligence and compensation. (Para 9 , 10)
4. court's consideration of additional evidence. (Para 11 , 12)
5. analysis of disability and compensation factors. (Para 13 , 14 , 15 , 16 , 17)
6. modification of tribunal's award. (Para 18 , 19)
7. conclusion of court decision. (Para 20)

JUDGMENT :

R.SAKTHIVEL, J.

Feeling aggrieved by the Award dated August 19, 2019 passed by the 'Motor Accidents Claims Tribunal / Special Subordinate Judge, Erode' ['Tribunal' for short] in M.C.O.P.No.381 of 2017, the second respondent therein - Insurance Company has preferred this Civil Miscellaneous Appeal praying to set aside the Award.

2. Hereinafter, for the sake of convenience, the parties will be denoted as per their array in the Motor Accident Claims Original Petition.

PETITIONER'S CASE IN BRIEF

3. On July 3, 2016, at about 07.00 a.m., the petitioner was riding his TVS Star City two-wheeler bearing Registration No.TN-47-AF- 2272, near Aathikkapallam Petrol Bunk, on the leftmost side of Velayuthampalayam to TNPL Road, in north to south direction. At that time, the first respondent, who was riding his Hero Pleasure two-wheeler bearing Registration No.TN-47-AE-4730 ahead of the petitioner’s vehicle in a rash and negligent manner at high speed, swerved right and collided with the petitioner's two-wheeler. Due to the sudden impact, the petitioner was thrown off his two-wheeler and sustained grievous injuries. The petitioner sustained injuries to his head, shoulder, and both knees. Immediately, the petitioner was given first aid at the Government Hospital, Velayuthampalayam, and then shifted to Amaravathy Hospital, Karur. Later, he was admitted to KMCH (Hospital), Coimbatore for further treatment. At the time of the accident, the petitioner was a 25 years old apprentice at Tamil Nadu Newsprint and Papers Limited (TNPL), Pugalur, Karur, earning a monthly salary of Rs.45,000/-. According to the petitioner, the first respondent, as the driver-cum-owner of the offending vehicle (Hero Pleasure two-wheeler bearing Registration No.TN-47-AE-4730), is responsible for the accident. The second respondent is the insurer of the first respondent's vehicle. Therefore, both respondents are jointly and severally liable to pay compensation to the petitioner. Hence, the petitioner filed a claim petition before the Tribunal, seeking compensation of Rs.1,20,00,000/- (Rupees One Crore Twenty Lakhs only).

FIRST RESPONDENT'S CASE

4. The first respondent, the owner of Hero Pleasure motorcycle bearing Registration No.TN-47-AE-4730, was called absent and set ex-parte by the Tribunal on July 3, 2017.

SECOND RESPONDENT’S CASE

5. The second respondent filed a counter before the Tribunal on February 6, 2018, denying the allegations made by the petitioner. The second respondent stated that the first respondent, being the driver-cum- owner of the Hero Pleasure motorcycle bearing Registration No.TN-47- AE-4730, did not inform the second respondent about the accident, as required by the terms and conditions of the insurance policy. It was also stated that neither the petitioner nor the first respondent possessed valid driving license, insurance certificate, or vehicle registration certificate at the time of the accident. Furthermore, the claim petition was contested on the grounds of non-joinder of necessary parties, as the insurer of the TVS Star City Plus bearing Registration No. TN-47-AF-2272 was not impleaded.

5.1. The second respondent filed another counter on February 27, 2018, denying the averments made in the petition. It contended that there is no clinical evidence to prove that the head injury allegedly sustained by the petitioner in the accident rendered him bedridden and unconscious.

5.2. The second respondent filed another counter on September 4, 2018, denying the allegation that the petitioner was unable to take care of himse

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