- 1 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 20TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR MISCELLANEOUS FIRST APPEAL NO. 20278 OF 2013 (MV-I) C/W MISCELLANEOUS FIRST APPEAL NO. 20634 OF 2013 MISCELLANEOUS FIRST APPEAL NO. 20635 OF 2013 IN MFA NO. 20278 OF 2013: BETWEEN: SMT. MANJULA W/O BALAKRISHNA TALAWAR, AGE: 32 YEARS, OCC: COOLIE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI. … APPELLANT (BY SRI. HANAMANT R. LATUR, ADVOCATE) AND: 1. RACHAYYA S/O DUNDAYYA KULKARNI, AGE: 50 YEARS, OCC: AGRICULTURE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI. 2. THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., SHRINIVAS TALKIES COMPLEX, 1ST FLOOR, MARKET, P.B. NO.54, DHARWAD-580 001. … RESPONDENTS (BY SRI. C.V. ANGADI, ADVOCATE FOR R2; R1-SERVED) Digitally signed by MALLIKARJUN RUDRAYYA KALMATH Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 THIS MFA IS FILED UNDER SECTION 173(1) OF M.V. ACT, PRAYING TO MODIFY THE JUDGMENT AND AWARD DATED: 26-09- 2012 PASSED IN MVC NO.2617/2010 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. M.A.C.T., BAILHONGAL. IN MFA NO. 20634 OF 2013: BETWEEN: THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., SHRINIVAS TALKIES COMPLEX, 1ST FLOOR MARKET, DHARWAD, REP. BY THE SENIOR DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., DIVISIONAL OFFICE, “SITA SMRUTI”, IIND FLOOR, MARUTI GALLI, BELAGAVI-590 002. … APPELLANT (BY SRI. C.V. ANGADI, ADVOCATE) AND: 1. SMT. MANJULA W/O BALAKRISHNA TALAWAR, AGE: 32 YEARS, OCC: COOLIE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI. 2. SRI. RACHAYYA S/O DUNDAYYA KULKARNI, AGE: MAJOR, OCC: AGRICULTURE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI, (OWNER OF TEMPO TRAX NO.KA-28/M-851). 3. SRI. RUDRAPPA S/O MALAKAJAPPA BUDIHAL, AGE: MAJOR, OCC: DRIVER, R/O: MURGOD, TQ: SAUNDATTI, - 3 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 DIST: BELAGAVI, (OWNER OF CRUISER BEARING NO.KA-06/A-3611). 4. THE DIVISIONAL MANAGER, BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD., CLUB ROAD, BELAGAVI, (INSURER OF CRUISER BEARING NO.KA-06/A-3611) … RESPONDENTS (BY SRI. H.R. LATUR, ADVOCATE FOR R1; SRI. V. SHIVARAJ HIREMATH, ADVOCATE FOR R2; SRI. K.H. BAGI, ADVOCATE FOR R3; SRI. S.K. KAYAKMATH, ADVOCATE FOR R4) THIS MFA IS FILED UNDER SECTION 173(1) OF M.V. ACT, PRAYING TO MODIFY THE IMPUGNED JUDGMENT AND AWARD DATED: 26-09-2012 PASSED IN MVC NO.2617/2010 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. M.A.C.T., BAILHONGAL AT BAILHONGAL. IN MFA NO. 20635 OF 2013: BETWEEN: THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., SHRINIVAS TALKIES COMPLEX, 1ST FLOOR MARKET, DHARWAD, REP. BY THE SENIOR DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD., DIVISIONAL OFFICE, “SITA SMRUTI”, IIND FLOOR, MARUTI GALLI, BELAGAVI-590 002. … APPELLANT (BY SRI. C.V. ANGADI, ADVOCATE) - 4 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 AND: 1. SMT. MALLAWWA W/O DEMAPPA TALAWAR, AGE: 41 YEARS, OCC: COOLIE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI. 2. SRI. RACHAYYA S/O DUNDAYYA KULKARNI, AGE: MAJOR, OCC: AGRICULTURE, R/O: CHIKKOPPA, TQ: SAUNDATTI, DIST: BELAGAVI, (OWNER OF TEMPO TRAX NO.KA-28/M-851). 3. SRI. RUDRAPPA S/O MALAKAJAPPA BUDIHAL, AGE: MAJOR, OCC: DRIVER, R/O: MURGOD, TQ: SAUNDATTI, DIST: BELAGAVI, (OWNER OF CRUISER BEARING NO.KA-06/A-3611). 4. THE DIVISIONAL MANAGER, BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD., CLUB ROAD, BELAGAVI, (INSURER OF CRUISER BEARING NO.KA-06/A-3611) … RESPONDENTS (BY SMT. JOSHNA P. DHANAVE, ADVOCATE FOR R1; SRI. V. SHIVARAJ HIREMATH, ADVOCATE FOR R2; SRI. K.H. BAGI, ADVOCATE FOR R3; SRI. S.K. KAYAKMATH, ADVOCATE FOR R4) THIS MFA IS FILED UNDER SECTION 173(1) OF M.V. ACT, PRAYING TO MODIFY THE IMPUGNED JUDGMENT AND AWARD DATED: 26-09-2012 PASSED IN MVC NO.980/2011 ON THE FILE OF THE SENIOR CIVIL JUDGE AND ADDL. M.A.C.T., BAILHONGAL AT BAILHONGAL. THESE APPEALS, COMING ON FOR FINAL HEARING THIS DAY, JUDGMENT IS DELIVERED THEREIN AS UNDER: - 5 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE HANCHATE SANJEEVKUMAR) MFA No.20278/2013 is filed by the claimant challenging the judgment and award dated 26.09.2012 passed in MVC No.2617/2010 on the file of Senior Civil Judge and Addl. M.A.C.T., Bailhongal1, seeking enhancement of compensation. 2. Whereas, MFA Nos.20634 and 20635 of 2013 are filed by the Insurance Company challenging the judgment and award dated 26.09.2012 passed in MVC Nos.2617/2010 and 980/2011 on the file of Senior Civil Judge and Addl. M.A.C.T., Bailhongal, questioning the liability fastened on it to pay compensation. 3. It is the case of claimant that the claimant- Manjula was waiting for the bus to go to her village Chikkoppa and claimant-Mallavva was travelling in the Tempo Trax bearing Reg.No.KA-28/M-851 and claimant- 1 (hereinafter referred to as ‘the Tribunal’ for short) - 6 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 Shivabasappa was traveling in Cruiser bearing Registration No.KA-06/A-3611 and the drivers of both vehicles came in opposite directions to each other and dashed together and caused the accident. Therefore, the claimants sustained injuries. 4. Upon the claim petition filed by the claimants, the Tribunal while awarding compensation held that the accident was caused entirely due to rash and negligent driving of the Tempo Trax bearing Registration No.KA-28/M-851. Thus, it was held that the owner and insurer of the Tempo Trax are jointly and severally liable to pay compensation and exonerated the owner and insurer of the Cruiser vehicle bearing Registration No.KA-06/A-3611. 5. The claimant-Manjula has preferred appeal in MFA No.20278/2013 seeking enhancement of compensation. Whereas, the insurer of the Tempo Trax bearing Reg.No.KA-28/M-8581 has preferred appeals in - 7 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 MFA Nos.20634 and 20635 of 2013 on the ground that the insurance policy is an ‘Act Policy’, but the claimants Manjula and Mallavva were travelling as occupants in the Tempo Trax. Therefore, the Insurance Company is not liable to pay compensation, but the owner of the Tempo Trax alone is liable to pay compensation. 6. Ex.P-1 is FIR and complaint; Ex.P-2 is statement of one Rudrappa Budhihal; Ex.P-3 is spot panchanama; Ex.P-4 is the IMV report; Ex.P-5 is charge sheet; Ex.P-6 is copy of statement of claimant-Manjula. 7. Upon perusal of oral and documentary evidence on record, it is established that the entire allegation of rash and negligent driving pertains to the driver of Tempo Trax bearing registration No.KA-28/M-851. It is alleged that the said accident occurred due to his rash and negligent driving of Tempo Trax. Accordingly, charge sheet was filed only against the driver of the said Tempo Trax. It is also proved that there was no rash and negligent driving - 8 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 on the part of the driver of Cruiser Jeep bearing No.KA-06 A-3611. Hence only the driver of Tempo Trax No.KA-28 M- 5851 has been arrayed as the accused in charge sheet. 8. Ex. P6 is statement of claimant-Manjula, in which, she clearly states that she was waiting for a bus with intention of returning to her village. In contrast, Ex. P7—Wound Certificate of Mallawwa demonstrates that Mallawwa was travelling as passenger in the Tempo Trax bearing registration No. KA-28/M-851, on her way to her own village. Due to rash and negligent driving of the said Tempo Trax driver, the accident occurred. Therefore, in light of foregoing evidence, it is conclusively established that the accident was caused entirely by the rash and negligent driving of the Tempo Trax bearing registration No. KA-28/M-851.” 9. Ex.R1 is copy of insurance policy pertaining to the said Tempo Trax. It is an admitted fact that it is a "Liability Only Policy”. Therefore, the appellant/Insurance - 9 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 Company is not liable to indemnify the owner of Tempo Trax No.KA-28 M-851, as the said insurance policy does not cover occupants of the vehicle. 10. This Court, in the case of DIVISIONAL MANAGER, UNITED INDIA INSURANCE COMPANY Ltd., AND OTHERS VS. SHAMARAYA AND OTHERS2, has held that occupants of a car or jeep are not considered as third parties. Hence, under the “Liability Only Policy” or “Act Policy”, the risk of occupants is not covered. In the present case, the claimants Manjula and Mallavva were occupants of the said Tempo Trax and not third parties. Therefore, only the owner of vehicle is liable to pay compensation. In view of the discussion made above, the appeals filed by the Insurance Company are allowed. The liability fastened upon the Insurance Company by the Tribunal is hereby set aside. The owner of Tempo Trax bearing registration No. KA-28/M-851 is alone liable to pay compensation. 2 MANU/KA/4690/2020 - 10 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 11. As regards to MVC No.981/2011, claimant- Shivabasappa, who was an occupant in the cruiser vehicle bearing No. KA-06 A-3611, is considered as a third party in relation to the said Tempo Trax. Therefore, the insurer of the Tempo Trax bearing registration No.KA-28 M-851 is liable to pay compensation to claimant-Shivabasappa. i) In MFA No.20278/2013 (MVC No.2617/2010) 12. In the present case, from the medical evidence on record it is proved that the claimant had suffered the following injuries. “Fracture of the right neck humerus, fracture of L/3 on right side.” 13. The Tribunal has awarded compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Pain and suffering 45,000/- 2. Medicine and hospital charges 5,530/- 3. Nourishment charges 5,000/- 4. Attendant and Conveyance 5,000/- 5. Loss of income during treatment period 18,000/- 6 Loss of future income 49,000/- 7. Loss of amenities, future unhappiness 40,000/- Total: 1,67,530/- - 11 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 14. Considering the nature of injuries sustained, compensation awarded by tribunal is lesser side. Therefore, the same is required to be enhanced by modifying the judgment and award. 15. The doctor-PW.4, who examined the claimant, has assessed permanent physical disability at 15% in the right upper limb and 10% at the L3 vertebra. However, the Tribunal considered only 11%, which is on the lower side. Therefore, considering the evidence of the doctor- PW.4, 15% functional disability is taken into consideration as the claimant had suffered grievous injuries i.e., Fracture of the right neck humerus, fracture of L/3 on right side. 16. The accident is caused in the year 2010. Therefore, notional income of Rs.5,500/- per month is taken into consideration, which is recognized by the Karnataka State Legal Service Authority. The claimant was aged 35 years old at the time of accident. Therefore - 12 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 appropriate applicable multiplier is 16. Hence, loss of future income due to disability is hereby reassessed as Rs.1,58,400/- (Rs.5,500/-x 15% x 12 x 16). 17. The compensation awarded under other heads by the Tribunal is just and proper and does not require any interference of this Court. Therefore, only the compensation towards loss of future income due to disability is enhanced. 18. Thus, the claimant is entitled for total compensation under various heads as under: Sl. No. Heads. Amount in (Rs.) 1. Pain and suffering 45,000/- 2. Medicine and hospital charges 5,530/- 3. Nourishment charges 5,000/- 4. Attendant and Conveyance 5,000/- 5. Loss of income during treatment period 18,000/- 6 Loss of future income due to disability. 1,58,400/- 7. Loss of amenities, future unhappiness 40,000/- Total: 2,81,930/- 19. Therefore, the claimant is entitled for total compensation of Rs.2,81,930/- along with interest at the - 13 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 rate of 6% p.a. from the date of filing of the petition till realization, as against Rs.1,67,530/- awarded by the Tribunal. 20. In the result, I proceed to pass the following: ORDER i) The appeals filed by the Insurance Company are allowed. ii) The appeal filed by the claimant is allowed in part. iii) The common judgment and award dated 26.09.2012 passed in MVC Nos.2617/2010 and 980/2011 on the file of Senior Civil Judge and Addl. M.A.C.T., Bailhongal, stands modified holding that owner of the Tempo Trax bearing registration No. KA-28/M-851 is alone liable to pay compensation to the claimant. iv) The claimant in MFA No.20278/2013 (MVC No.2617/2010) is entitled for total compensation of Rs.2,81,930/- along with interest at the rate of 6% p.a. from the date of petition till its realization, as against the - 14 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 compensation of Rs.1,67,530/- awarded by the Tribunal. v) The liability fastened on the Insurance Company is set aside. vi) The owner-respondent No.1 shall deposit the amount within a period of eight weeks from the date of receipt of a copy of this judgment in both the cases. vii) Send a copy of this judgment and award along with TCR to the Tribunal. viii) The amount in deposit made by the Insurance Company shall be transmitted to the Tribunal. ix) No order as to costs. x) Draw award accordingly. Sd/- (HANCHATE SANJEEVKUMAR) JUDGE SRA Para 1 to 6, RHR Para 7 to 20 CT:BCK LIST NO.: 1 SL NO.: 75 - 15 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 IN THE HIGH COURT OF KARNATAKA AT DHARWAD [THE DIVISIONAL MANAGER, UNITED INDIA VS. MANJULA W/O BALAKRISHNA TALAWAR AND OTHERS] 25.07.2025 (VIDEO CONFERENCING / PHYSICAL HEARING) CORAM: HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR ORDER ON ‘MEMO FOR BEING SPOKEN TO’ This Court, vide order dated 20.06.2025, has disposed off the appeal by allowing the appeal filed by the Insurance Company. It is ordered in Clause-viii at page No.14 of the operative portion that amount in deposit made by the Insurance Company shall be transmitted to the Tribunal. But it ought to have been typed as the amount in deposit made by the Insurance Company shall be refunded to the Tribunal. Therefore, instead of transmitting the amount to the Tribunal, the registry shall refund the deposited amount to the Tribunal. Therefore, Clause-viii at page No.14 of the operative partition is modified to the extent above stated, which shall be read as under: “iv) The amount in deposit made by the Insurance Company shall be refunded to the Tribunal.” - 16 - HC-KAR NC: 2025:KHC-D:7898 MFA No. 20278 of 2013 C/W MFA No. 20634 of 2013 MFA No. 20635 of 2013 Registry to furnish fresh copy of judgment to the appellant. This order shall be read as part and parcel of the order dated 20.06.2025. Sd/- ( HANCHATE SANJEEVKUMAR) JUDGE PMP List No.: 1 Sl No.: 1