HC Upholds Compensation for Driver’s Accident Injuries Linked to Employment

Case Details: Legal Manager, Bajaj Allianz General Insurance Company Ltd. vs. Trupti Pal [2025] 179 taxmann.com 27 (HC-Orissa)

Judiciary and Counsel Details

• Dr S.K. Panigrahi, J.
• Adam Ali Khan, Adv. for the Appellant.
• Biswajit Mohanty & Anirudha Rout, Advs. for the Respondent.

Facts of the Case

In the instant case, the Respondent No. 2 – employee was employed as a driver of a Hyundai car owned by OP1. While discharging his duties as a driver of said vehicle, respondent No.2 met with an accident and sustained a head fracture along with other multiple injuries on various parts of his body.

The Respondent No.2 sought compensation before the Commissioner for Employees’ Compensation. The Commissioner held that respondent No.2 had suffered an 80% loss of earning capacity and compensation was computed as 60% of his monthly wage, multiplied by the relevant factor applicable for a person aged 31 years (205.95), and further multiplied by the assessed 80% loss of earning capacity, resulting in a compensation of Rs. 14.82 lakhs.

The interest at a rate of 12% per annum was awarded from the date of accident to the date of judgment, amounting to Rs. 4.85 lakhs, thereby taking the total to Rs. 19.67 lakhs. In addition, medical expenses of Rs. 2.49 lakhs were awarded, bringing the total compensation amount to Rs. 22.17 lakhs.

On appeal, it was found that treatment records from the Hospital clearly reflected the nature and severity of injuries sustained by respondent No.2 and specifically identified the cause of injury as a road traffic accident.

Further, the employer, in his deposition, unequivocally confirmed that respondent No. 2 was driving the insured vehicle at the relevant time and was discharging his official duties. Therefore, the causal link between the accident and the course of employment stood firmly established.

High Court Held

The High Court held that the compensation was correctly computed by the Commissioner for Employees’ Compensation by applying the formula under section 4 of the Employees’ Compensation Act, 1923, by multiplying 60% of the monthly wage by the relevant factor for the age of the employee and the assessed loss of earning capacity. Therefore, the appeal was to be dismissed.

List of Cases Referred to

• Regional Director, ESI Corporation v. Francis De Costa (1996) 6 SCC 1 (para 11)
• Pulmati Dhramdev Yadav v. New India Assurance Co. Ltd. 2023 SCC OnLine SC 1105 (para 14)
• Golla Rajamma v. Divisional Manager, National Insurance Co. (2017) 1 SCC 45 (para 15).