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2026 Supreme(Online)(Kar) 10821

THE HIGH COURT OF KARNATAKA
S.G.Pandit, K. V. Aravind, JJ
Reliance General Insurance Co. Ltd. – Appellant
Versus
Kavitha – Respondent
MFA No. 68 of 2023



Advocates:
For the Appellants/Petitioners: D Vijayakumar
For the Respondents: K T Gurudeva Prasad

In motor accident claim cases, when documentary evidence regarding income is outdated, the court must assess income based on the notional income chart relevant to the year of the accident, and future prospects must be calculated at 25% for a self-employed person or those without permanent income aged 40-50.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173(1) and 166 - Motor accident - Negligence - Liability - Determination of income - Quantum of compensation - Tribunal is justified in attributing entire negligence upon the driver of the school bus based on spot sketch and IMV report - Wage slips produced nearly two years post-accident are not reliable for assessing monthly income at the time of death - Notional income for the year 2021 fixed at Rs.15,000/- as per State Legal Services Authority guidelines - Future prospects added at 25% for deceased aged 44 - Compensation re-calculated with modified conventional heads as per Pranay Sethi ratio. (Paras 10, 11, 12, 13)

Facts of the case:
The appeal was filed against the Tribunal's award regarding the death of the deceased in a road accident. The Insurance Company contended that the deceased was negligent, lacked a valid driving license, and that the salary documents provided were outdated. The Tribunal had originally awarded Rs.27,42,000/- while fixing 100% liability on the insurer to pay and recover.

Findings of Court:
The court upheld the liability of the bus driver but reduced the total compensation to Rs.22,65,000/- after re-assessing the monthly income and adjusting the future prospects and conventional heads based on established legal precedents.

Issues: Whether the Tribunal was justified in attributing entire negligence to the school bus driver and whether the awarded quantum was just and proper.

Ratio Decidendi: The appellate court ruled that wage slips significantly preceding the accident date are insufficient to prove income at the time of death, mandating the use of notional income charts, and applied the multiplier and future prospects standard consistent with the age of the deceased.

Result: Appeal partly allowed.

Table of Content
1. overview of accident facts and initial tribunal findings. (Para 1 , 2 , 3)
2. determination of negligence and liability regarding the accident involving the school bus. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. re-computation of compensation, income assessment, and final modified award adjudication. (Para 11 , 12 , 13 , 14 , 15)

ORAL JUDGMENT

(PER: HON'BLE MR. JUSTICE S.G.PANDIT)

This appeal is by the Insurance Company under Section 173(1) of the Motor Vehicles Act, 1988 (for short, ‘the Act’) against the judgment and award dated 02.11.2022 in MVC No. 6051/2021 on the file of MACT and XV Additional Judge, Mayo Hall Unit, Bengaluru aggrieved by the saddling of 100% liability upon the Insurance Company as well the compensation awarded by the Tribunal.

2. The brief facts of the case are that the claimants who are the wife and minor sons of the deceased, filed a petition under Section 166 of the Act seeking compensation for the accidental death of one Sri.Lokesh.M in a motor vehicle accident involving motor cycle bearing registration No.KA-04-JW-0269 and School bus bearing registration No.KA-53-C-4369 on Bidarahalli Baiyappanahalli Village Road, Bidarahalli Hobli, Bangalore East Taluk at about 08.15 p.m., on 06.12.2021. It was submitted before the Tribunal that at the time of the accident, the deceased was hale and healthy, aged 45 years, was working as a driver at Narayana School and earning Rs.22,000/- p.m.

3. Before the Tribunal, upon issuance of notice, the Insurance Company appeared and filed its objections to the claim petition, denying the petition averments in toto, whereas, Respondent No. 4 herein was placed ex parte. On behalf of the claimants, the claimant No.1 examined herself as PW1 and got marked Exs.P1 to P14. On behalf of the Insurance Company, one Sri.Dodda Lingayya was examined as RW1 and one Sri.Ibrahim Muzawar was examined as RW2, apart from marking Exs.R1 to R5. The tribunal upon examination of the material on record, saddled the entire liability upon the insurance company of the school bus with liberty to recover the same from the owner of the School Bus and awarded the total compensation of Rs.27,42,000/- along with interest @ 6% pa under the following heads:

Sl No. Compensation under the Head Amount
1. Loss of dependency Rs. 25,91,736/-
2. Loss of estate Rs. 15,000/-
3. Funeral expenses Rs. 15,000/-
4. Loss of Consortium Rs. 1,20,000/-
TOTAL Rs. 27,41,736/-

4. While coming to the afore-stated conclusion, the Tribunal assessed the monthly income of the deceased at Rs. 17,800/- p.m., added 30% towards future prospects, deducted 1/3rd towards personal and living expenses of the deceased and adopted the multiplier of ‘14’.

5. Heard Sri.D.Vijayakumar, learned counsel for the insurance company and Sri.K.T.Gurudeva Prasad, learned counsel for the claimants. Perused the entire appeal papers including the Trial Court records.

6. Learned counsel for the Insurance Company Sri.D.Vijayakumar has contended that the accident has occurred solely due to rash and negligent driving of the motor cycle by the deceased. It is contended on behalf of the Insurance Company that the deceased did not have a valid driving licence and drove the motorcycle without wearing a helmet. It is contended on behalf of the insurance company that the claimants have colluded with the Police Authorities and falsely implicated the driver of the bus by creating false and fabricated documents. With regard to compensation, it is submitted that the pay slips produced by the claimants is more than a year old and hence, the claimants have failed to prove the monthly income of the deceased. It is also submitted that the Tribunal erred in awarding future prospects to the extent of 30%. Thus, it is prayed that the appeal filed by the Insurance Company be allowed to the above extent.

7. Per contra, learned counsel Sri.K.T.Gurudeva Prasad for the claimants would submit that the Tribunal is justified in attributing the negligence upon

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