The court clarified the application of statutory compensation formulas under the Motor Vehicles Act and the liability of insurance companies for injuries to employees traveling in company vehicles.

1. These civil miscellaneous appeals are directed against the award passed by the Motor Accidents Claims Tribunal, Sivakasi, in MCOP No. 171 of 2000, dated 19.2.2016.

2. The insurance company has preferred CMA (MD) No. 653 of 2020 challenging the quantum of compensation, whereas the owner of the offending vehicle has preferred CMA (MD) No. 654 of 2020, challenging the liability fastened on him following the principle of pay and recover.

3. The brief facts leading to the award under challenge are as below:
(i) On 23.2.2000 at 1830 hrs, D. Varatharajan, the claimant, driver by profession, while returning home after his duty hours, in the bus bearing registration No. TDR - 7079 was standing near the stairs on the front side entrance of the bus. Due to rash and negligent driving of the bus driver, on Sivakasi - Sattur Main Road, near Muthalnaickenpatti Deviatory, the claimant slipped down from the bus and sustained head injury and multiple injuries all over his body. He was rushed to the Government Hospital, Sattur, where he was referred to Government Rajaji Hospital, Madurai.He took treatment for 43 days as inpatient and thereafter, discharged on 5.4.2000 with a direction to undergo physiotherapy daily.
(ii) A criminal case in Crime No. 73 of 2000 was registered against the bus driver for his rash and negligent driving. Alleging that due to the injury sustained in the road accident, he has become semi - paralysed, unable to carry on his day - to - day work without assistance and he is not able to write or continue his occupation as bus driver, therefore, the accident has caused immeasurable and incalculable loss. Hence, a claim petition restricted to a sum of Rs. 2,00,000 has been filed by the claimant against the insurer of the offending bus and owner of the bus.

4. Before the Tribunal, F.I.R., wound certificate, discharge summary and salary certificates were relied on by the claimant. On the side of the respondents, to show that the claimant was travelling without purchasing ticket, the bill book copy and trip sheets were marked. The claimant was examined as PW 1. On behalf of the respondents, three witnesses were examined.

5. The Tribunal, after considering the claim petition, counter - statement filed by the insurance company and documents, held that the injury sustained by the claimant has caused him 75 per cent permanent disability. The accident has occurred while the claimant was travelling near the footboard due to rash and negligent driving of the bus driver. Since the claimant travelled without purchasing ticket, the plea of the insurance company that it is not liable to compensate the unauthorised passengers was accepted and directed the insurance company to pay the compensation at the first instance and recover it from the bus owner. Regarding quantum, the Tribunal taking note of the salary certificate (Exh. P6), which discloses that the claimant was paid Rs. 112 per day as wage, arrived at his monthly income as Rs. 2,800 and fixed Rs. 5,37,600 as loss of income and considering the disability certificate (Exh. P5), fixed his disability at 75 per cent and applying multiplier '16', towards loss of future income, awarded Rs. 4,03,200. For pain and suffering, the Tribunal has awarded Rs. 2,00,000. Towards nutritious food and transport, it has awarded Rs. 5,000 each. In addition, for 75 per cent disability, the Tribunal has awarded Rs. 2,25,000, i.e., Rs. 3,000 per percentage of disability. Thus, the total sum of Rs. 13,75,800 is awarded as compensation along with interest at 9 per cent p.a. from the date of claim petition till the date of realization, except f