In a significant ruling, the Karnataka High Court has increased the compensation for the family of a young diploma student, M S Srihari, who was tragically killed in a road accident in 2019. The court ordered the compensation to be elevated from the initial Rs 1,53,000 to Rs 21,28,800, to be paid by the insurance company involved.
The division bench of Justices K S Mudagal and Vijayakumar A Patil delivered the judgment, revising the amount previously determined by the Motor Accident Claims Tribunal in April 2022. The decision reflects a considerable increase, emphasizing the gravity of the case and the family’s appeal for a more appropriate compensation.
The accident, which occurred on April 23, 2019, involved Srihari riding pillion with his friend, Aravind, on the Hejjala-Kempadyapanahalli Road near Bengaluru. The motorcycle veered off course due to rash and high-speed driving and collided with a mud wall near Mallathahalli village in the Ramanagara district, resulting in the instant death of both the rider and the pillion.
Initially, Srihari’s family sought Rs 30 lakh in compensation, arguing that Srihari, a student at PES College, supplemented his education with a monthly income of Rs 20,000 from a milk vending business. However, the Tribunal had awarded a markedly lower sum, citing that the motorcycle owner, Suraj Kumar, was principally liable as the rider lacked a valid driving license.
Challenging the Tribunal’s verdict, Srihari’s family appealed to the High Court, insisting that the compensation be funded by the insurance company initially, allowing them to recover the costs from the vehicle owner subsequently—a practice supported by precedents set by the Supreme Court.
The insurer resisted the appeal, arguing that the absence of a valid driving license by the rider was a breach of policy and questioning the claimants’ proof of financial dependency on Srihari. However, the High Court favored the family, applying the “pay and recover” principle and finding the Tribunal’s compensation grossly insufficient.
Recognizing the potential future prospects lost due to Srihari’s untimely demise, the court opted for a notional monthly earnings estimate of Rs 14,000 for the deceased, applying an additional 40 percent for future potential income loss. The court’s directive also included an order for the insurance company to disburse the adjusted compensation amount with an annual interest rate of six percent from the date of filing the petition until full payment is made.
