The Karnataka High Court enhanced the accident compensation awarded to a tractor porter to Rs. 3,90,909, after noting that the Motor Accident Tribunal did not consider the notional monthly wage fixed by the Central Government in a 2010 notification for the purpose of calculation of compensation. 

As per a May 31, 2010 Government of India notification fixing monthly wages at Rs.8,000 for purpose of calculating compensation to employees under the Employees' Compensation Act, 1923, however the Motor Vehicle Tribunal had used Rs. 4,500 for compensation computation.

Justice Tara Vitasta Ganju partly allowed an appeal filed by a tractor porter under Section 30(1) of the Employees' Compensation Act, 1923, challenging the award passed by the Motor Accidents Claims Tribunal (MACT). The Court enhanced the compensation by Rs. 1,42,067 to Rs. 3,90,909, with 12% interest per annum.

The Court enhanced the compensation, noting that the accident took place on June 22, 2010, after the Government of India notification dated May 31, 2010 was published which had fixed the monthly wages at Rs 8,000.

“Thus, taking into consideration 60% of the notional income at Rs.8,000/- per month [i.e.Rs.4,800/-], disability at 30% and adopting factor of '225.22' as per Schedule IV of the E.C. Act, the appellant is entitled to an enhanced compensation in a sum of Rs.1,42,067/-, with interest at the rate of 12% per annum,” the Court held.

The Court placed reliance on the Supreme Court ruling in V. Renganathan & Another vs Branch Manager, United India Insurance Company Limited & Another (2022) and Karnataka High Court's order in Narayanaswamy case (2025), wherein it was held, “the Insurer cannot be absolved of all its liability and the Insurer must pay the claimant and recover the same from the owner of the Tractor.”

The Court added, “the respondent No.2/ Insurance Company is liable to pay the compensation awarded by the learned Tribunal as well as the enhanced compensation by this Court to the appellant and recover the same from the respondent No.1/owner of the Tractor, in accordance with law.”

Accordingly, the Court allowed the appeal in part, modifying the compensation quantum passed by the Tribunal. It further directed the insurance company to pay the enhanced compensation within eight weeks.

The case arose from an accident, in which the claimant was injured and suffered fracture. At the time, the claimant— who worked as a porter for the first respondent— was loading and unloading manure from the tractor as part of his job, when the tractor fell into a roadside channel. Subsequently, he filed a claim petition before the Principal Senior Civil Judge and MACT-IV at Davanagere. On April 20, 2017, the tribunal partly allowed the claim, awarding ₹2,48,842/- with 12% interest payable solely by the vehicle owner while completely absolving the insurance company. For computing the compensation, the tribunal took the monthly wage of the claimant to be Rs 4,500. Aggrieved by this, the claimant preferred an appeal before the High Court.