C. Mohanraju vs Divisional Manager, United India Assurance Company Limited and another
- SCC(2011) 15 SCC 124
Ratio decidendi
The rule this decision rests on
When assessing disability in motor accident compensation claims, the court must examine the nature of the victim's occupation and the specific injuries sustained, and disability must be calculated not merely on a medical percentage but with reference to the victim's actual earning capacity in light of the nature of the work performed. Where medical evidence establishes disability of 25-30%, and the victim's specific occupation requires use of limbs affected by the injury, the court may apply a disability percentage at the higher end of the medical assessment that reflects the occupational impairment.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2. On 2.09.2002, at about 2.30 pm, the appellant-
claimant was walking on the Byatarayanapura road
near the bus stop, when the driver of a motorcycle
(bearing no. KA-03-X-8591) came and dashed against
the appellant, as a result of which the appellant
sustained serious head injuries leading to weakness
of his right hand and leg. The respondents are the
1
insurance company and the owner of the offending
vehicle respectively.
3. The appellant filed a claim petition under
Section 166 of the Motor Vehicles Act, 1988,
claiming compensation to the tune of Rs.4,00,000/-.
4. The Motor Accident Claims Tribunal (MACT), vide
award dated 22.06.2006, concluded that the accident
had occurred due to the rash and negligent driving
of the motorcycle, resulting injuries to the
appellant. Though the doctor had assessed
disability at 25% to the whole body, the Tribunal
took it at 10%. The appellant was aged 35 years and
was involved in silk winding. He claimed to be
earning Rs.4,500 per month but there was no
documentary evidence to prove his income. Hence,
the Tribunal assessed it at Rs.50/- per day, which
amounted to Rs.18,000/- annually and Rs.6,30,000/-
during his whole life. As 10% loss was caused due
to disability, the Tribunal held that the appellant
2
was entitled to Rs.63,000/- towards loss of future
income. The Tribunal also awarded Rs.20,000/- for
pain and suffering, Rs.10,000/- for loss of future
amenities, Rs.1,200/- for medical expenses,
Rs.5,000/- for future medical treatment and
conveyance. Accordingly, total compensation was
fixed at Rs.1,02,200/-, payable with interest @ 6%
p.a. from the date of the claim petition till date
of deposit by the insurance company on behalf of
the owner of the offending vehicle.
5. Aggrieved by the compensation awarded by the
Tribunal, the appellant appealed to the High Court
of Karnataka at Bangalore. The High Court partly
allowed the appeal by enhancing the compensation
amount. It held that as the appellant was a silk
weaver, he could not have been earning less than
Rs.3,500/- per month. Thus, it awarded loss of
income during laid-up period as Rs.10,500/-
(Rs.3,500 X 3 months). The High Court calculated
the disability of the whole body at 25%. It held
3
that annual loss of income would be Rs. 10,500. As
the claimant was aged 34 years, the applicable
multiplier would be 16. Thus, loss of future income
was calculated at Rs.1,68,000/- (Rs.10,500 X 16).
Considering the nature of injuries suffered by the
appellant, the High Court also enhanced amount
awarded for pain and suffering to Rs.35,000/-, for
loss of amenities to Rs.50,000/-, for medical and
allied expenses to Rs.10,000/-. Accordingly, total
compensation amounted to Rs.2,78,500/- along with
interest on the enhanced amount @ 6% p.a. from the
date of the claim petition till date of payment.
6. Being still aggrieved by the judgment of the
High Court, the appellant filed the present appeal
claiming further enhancement of compensation.
7. Having heard the parties and perused the
materials on record, we are of the opinion that the
appeal deserves to be allowed.
4 8. The High Court, in calculating future loss of
income, took the monthly income of the appellant to
be Rs.3,500/-; thus annual income would amount to
Rs.42,000/-. Accordingly, annual income of
Rs.42,000/- at a multiplier of 16 amounts to
Rs.6,72,000/-. The next question for consideration
is the percentage of disability.
9. As per the doctor's evidence, doctor assessed
disability as hemiperesis right side at 40%, severe
headache 10%, blurring of vision 10% and recent
loss of memory at 10%. He assessed 25-30%
disability of the whole body. The doctor also added
that as a result of the disability, the appellant
was incapable of doing silk winding work or any
other manual work. It seems that there is severe
weakness of the right hand and leg. The appellant
is a silk winder, an occupation for which he needs
to use his hands. Weakening of his right hand would
adversely affect his ability to perform his
occupation as he had been doing before the
5
accident. As a result, we assess the disability of
the victim to earn in future at 30% as against 25%
assessed by the High Court.
10. Thus, loss of future income amounts to
Rs.2,01,600/- (30% of Rs.6,72,000/-). We also
enhance the compensation awarded for future medical
expenses to Rs.10,000/-. The compensation awarded
by the High Court under the remaining heads is
sustained. Thus, it comes to Rs.3,17,100/-, which
we round off to Rs.3,20,000/-. Interest will be
payable on the enhanced amount at 6% from the date
of the claim petition till date of realization.
11. Accordingly, the appeal is allowed.
12. No order as to costs.
.......................J.
(G.S. SINGHVI)
.......................J.
New Delhi (ASOK KUMAR GANGULY)
April 04, 2011
6
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free