High Court Enhances Compensation in Motor Accident Claim Case -- Appellant Granted Additional Rs.89,140 with Interest at 6% p.a. -- Tribunal's Award Modified for Incorrect Income Calculation and Omission of Loss of Amenities

Sub Category: Karnataka High Court Bench: BENGALURU
  • 29
Judgement Image
Font size:
Print

Case Note & Summary

The High Court allowed an appeal seeking enhancement of compensation in a motor accident claim case -- The appellant had sustained injuries in a road traffic accident on 15.01.2016 while travelling in a bus -- The MACT had awarded Rs.3,27,292/- as compensation -- The High Court found two errors in the Tribunal's award: incorrect calculation of notional income and omission of compensation for loss of amenities -- The Court recalculated the compensation using Rs.9,500/- as monthly notional income instead of Rs.8,000/- and added Rs.30,000/- for loss of amenities -- The total compensation was enhanced to Rs.4,16,432/- with interest at 6% per annum from the date of petition till realization -- The Insurance Company was directed to deposit the enhanced amount within eight weeks

Headnote

The High Court of Karnataka at Bengaluru allowed an appeal filed under Section 173(1) of the Motor Vehicles Act, 1988 (MV Act) challenging the judgment and award dated 17.02.2018 passed by the Motor Accidents Claims Tribunal (MACT) -- The appellant-claimant sought enhancement of compensation awarded for injuries sustained in a road traffic accident -- The Court found that the Tribunal had incorrectly calculated the notional income at Rs.8,000/- per month instead of Rs.9,500/- per month for the year 2016 -- The Court also noted that no compensation was awarded for loss of amenities despite the claimant's injuries and disability -- The Court modified the award by enhancing the compensation from Rs.3,27,292/- to Rs.4,16,432/- with interest at 6% per annum -- The enhanced amount included Rs.30,000/- for loss of amenities and recalculated amounts for loss of future income and loss of income during treatment

Issue of Consideration: The Issue of enhancement of compensation in motor accident claim case

Final Decision

The appeal was allowed -- The impugned judgment and award was modified -- The appellant was entitled to enhanced compensation of Rs.89,140/- along with interest at 6% per annum from the date of petition till realization -- The total compensation payable was Rs.4,16,432/- including the original award of Rs.3,27,292/- -- The Insurance Company was directed to deposit the enhanced compensation within eight weeks

2026 LawText (KAR) (01) 42

Miscellaneous First Appeal No. 6735 of 2018 (MV-I)

2026-01-22

Hon'ble Ms. Justice Tara Vitasta Ganju

HC-KAR NC: 2026:KHC:3898

Sri Yogesha G.K. (for Appellant), Sri D. Vijaya Kumar (for Respondent No.1)

Sri Kanchipathi @ Kiran S/o Ramaiah

The Manager, IFFCO Tokio General Insurance Co. Ltd., Sri B.R. Pradeep S/o Rajanarsimha Murthy

Nature of Litigation: Appeal against compensation award in motor accident claim case

Remedy Sought

Appellant sought enhancement of compensation awarded by the Motor Accidents Claims Tribunal

Filing Reason

The appellant challenged the Tribunal's award dated 17.02.2018 on grounds of incorrect notional income calculation and omission of compensation for loss of amenities

Previous Decisions

The Motor Accidents Claims Tribunal had awarded Rs.3,27,292/- as compensation with interest at 6% per annum

Issues

Whether the notional income was correctly calculated by the Tribunal Whether compensation should be awarded for loss of amenities

Submissions/Arguments

Appellant's counsel argued that notional income should be Rs.9,500/- per month instead of Rs.8,000/- per month for year 2016 Appellant's counsel contended that no amount was awarded for loss of amenities despite injuries and disability Appellant's counsel submitted that loss of income during treatment period should be awarded Respondent's counsel conceded that notional income calculation was incorrect and compensation for loss of amenities should be awarded

Ratio Decidendi

The Tribunal must apply correct notional income as per prevailing standards for the accident year -- Compensation for loss of amenities is a necessary component in motor accident claims where injuries result in disability or reduced quality of life -- Appellate courts can modify compensation awards when errors in calculation or omissions are established

Judgment Excerpts

The learned Trial Court had wrongly calculated the notional income No amounts have been granted on loss of amenities even though the same should have been provided for in accordance with law This Court deems it apposite to award the loss of amenities at Rs.30,000/- The appeal is allowed The impugned Judgment and Award is modified

Procedural History

Accident occurred on 15.01.2016 -- Claim petition filed before MACT -- Tribunal passed award on 17.02.2018 awarding Rs.3,27,292/- -- Appeal filed before High Court under Section 173(1) of MV Act -- High Court heard arguments and delivered judgment on 22.01.2026

Related Judgement
High Court High Court Enhances Compensation in Motor Accident Claim Case -- Appellant Grant...
Related Judgement
High Court Court Strikes Down Arbitrary Lease Rent Hikes Based on Ready Reckoner Rates. Sta...