Motor Vehicle Act, 1988 – Compensation – Enhancement – Claimant, 38 years old skilled carpenter, while travelling on his motorcycle, was hit by Jeep driven rashly and negligently, coming from the wrong side of the road – Claimant suffered serious injuries resulting in amputation of his right leg, from above the knee and became completely disabled – Tribunal awarded compensation of Rs.4,77,823/- with 4% pa interest, however, High Court enhanced the amount to Rs.11,51,423/with 6% pa interest – Correctness: Held: When the income of the injured claimant carpenter is to be notionally assessed for the purpose of compensation, the fact that he was a skilled worker, cannot be overlooked, and has to be accounted for – In assessing the compensation for permanent disability, quantum of compensation must correspond to the loss of earning capacity which is an important yardstick and an acid test which would guide the courts – Socio-economic conditions of the claimant and the concerning circumstances on that count also to be taken into account – Extent of the functional disability largely remain dependent upon the nature of work and the kind of earning activity in which the injured is engaged, and not what the doctor may have judged in terms of medical standards – Claimant was engaged in the carpentry work and while working as a carpenter, he has to necessarily sit – Because of amputation of the lower half part of the right leg, the claimant is not able to sit in a squatted or crossed legged manner, as such it is evident that he will not be able to perform the carpentry work – Carpenter cannot perform such work while in a standing position – For standing also, he would need support – Thus, the actual effect of amputation resulting out of the accidental injury for the claimant is total in terms of the work in which he is engaged and he is to perform, which really does not match and does not augur well with the extent of 70% disability as medically indicated – Disability of the claimant has to be appreciated and assessed in the context of the occupation of the claimant, activity of work he used to do as carpenter – Functional disability of the claimant has to be taken properly and reasonably at 100% – Claimant is 38 years of age, and taking his average life expectancy to be 75 years, he would require a replacement of artificial limb at least six times for the remaining 37 years – Prosthetic limb would again require a half yearly repair and maintenance – Claimant must be compensated in a manner and to the extent that he is able to live life in the future years almost in the same way as he was leading his life prior to the accident – In the yearly income to be assessed on the basis of monthly income at Rs.9,000/- and 40% will have to be added towards ‘future prospects – Calculation, thus, leading to the amount to be awarded towards loss of future earnings with 100% disability and multiplier of 15% would be 22,68,000/- – In the said total amount, the compensation towards other heads, expenses for prosthetic leg, towards pain, shock and suffering, for attendant charges, medical expenses, loss of amenities, loss of income during laid up period, attendant charges, transportation charges to be added – Compensation of Rs.35,95,923/- to be just and fair compensation to be paid to the claimant, with 6% p.a interest from the date of filing of the claim petition till actual payment. [Paras 5.2, 5.2.4, 5.3.2, 5.4.1, 5.5.1, 5.5.2, 5.6.3, 5.7.4-5.7.65.9, 5.9.2-8]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
This page is for informational and research purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.