IN THE HIGH COURT OF KERALA AT ERNAKULAM
C. PRATHEEP KUMAR, J.
James Joseph S/o Joseph - Appellant
Versus
The National Insurance Co. Ltd. - Respondent
MACA No. 404 of 2014
Decided On : 18-02-2025
(A) Motor Vehicles Act, 1988 - Section 166 - Compensation for injuries sustained in a motor vehicle accident - Petitioner sustained serious injuries due to negligent driving of a lorry - Tribunal awarded Rs.4,15,087/- which was contested by the petitioner - Medical Board assessed permanent disability at 15% - Court held that multiplier should be applied based on age at the time of accident, not retirement age, and future prospects should be considered. (Paras 1, 4, 15, 19)
(B) Compensation Assessment - The court emphasized that the multiplier should reflect the age of the victim at the time of the accident and not the retirement age, and that future prospects must be factored into the compensation calculation. (Paras 6, 13)
Facts of the case:
The petitioner was involved in a motor vehicle accident on 28.8.2005, resulting in serious injuries including a T-shape fracture of the acetabulum. He was hospitalized for 63 days and underwent surgery for hip replacement. The Tribunal awarded Rs.4,15,087/- as compensation, which the petitioner found inadequate.
Findings of Court:
The court recalculated the compensation to Rs.6,70,327/- considering the injuries, disability, and loss of amenities.
Issues: The main issues were the appropriate multiplier for calculating compensation and the consideration of future prospects in the assessment of damages.
Ratio Decidendi: The court ruled that the multiplier should be based on the age at the time of the accident and that future prospects must be included in the compensation calculation, aligning with precedents.
Result: Appeal allowed in part, total compensation modified to Rs.6,70,327/- with interest.
JUDGMENT :
(C. Pratheep Kumar, J.)
The petitioner in OP(MV).1215/2006 on the file of the Motor Accidents Claims Tribunal, Ernakulam is the appellant. He filed the OP under Section 166 of the Motor Vehicles Act claiming compensation for the injuries sustained in a motor vehicle accident that occurred on 28.8.2005. According to the petitioner, on 28.8.2005, at about 11.00 a.m., while he was driving his Maruti car through the Kottayam-Ernakulam road, a lorry bearing registration No.KL-07-R-5155 driven by the 1st respondent in a rash and negligent manner hit on the car and as a result of which he sustained serious injuries.
2. In this case the petitioner sustained T-shape fracture of acetabulam with posterior wall fracture in addition to pain and tenderness over right knee. The petitioner was treated as inpatient for a total period of 63 days on two occasions in the Medical Trust hospital, as revealed from Exts.A15 and 16 discharge summaries. From Ext.A14 discharge summary, it is revealed that he was admitted in Chazhikkadu hospital, Thodupuzha on 9.4.2007 for Ostero arthritis right hip treatment and surgery was conducted and the hip was replaced totally and then he was discharged on 23.4.2007. From Exts.A15 and A16 it is also revealed that “closed reduction and upper tibial skeletal traction done under GA, Gastrosurgery consultation given for abdominal pain CT abdomen – Normal study, ORIF done with extended illeofemoral approach post column fixed with 9 holed Recomplate and 6 screws, Anterior column 5 holed Recomplate and 4 screws roof fixed with 2 K wires. Patient had collection haematoma at wound site, wound wash given for the same.
3. The Tribunal has awarded a total compensation of Rs.4,15,087/-, major portion of which, namely Rs.3,17,487/- was medical expense supported by bills. Out of the remaining amount, Rs.40,000/- was for pain and suffering, Rs.30,000/- for loss of amenities and Rs.5000/- each towards extra nourishment, together for transportation and damage to clothing and compensation for leave. Another Rs.12,600/- was awarded on the head bystander's expenses. Dissatisfied with the compensation awarded by the Tribunal, the petitioner preferred this Appeal.
4. During the pendency of the appeal, the petitioner was referred to a medical Board in the Government Medical College, Ernakulam. After examining the petitioner, the Medical Board sent a disability certificate assessing his permanent physical disability at 15%. Since the said disability certificate was issued by the medical board, I find no grounds to disbelieve the same. Accordingly, the disability of the petitioner is fixed as 15%.
5. At the time of the accident, the petitioner was aged 45, getting monthly salary of Rs.12,958/-. Therefore, the learned counsel for the petitioner submitted that 30% of the income is to be added towards future prospects and multiplier to be applied is 14. On the other hand, according to the learned counsel for the 3rd respondent, since the petitioner retired at the age of 60, there will be reduction in his income only after the age of 60 and hence, the multiplier to be applied should be that of the year of his retirement. He has also relied upon the decision of a learned Single Judge of this Court in Raju Sebastian v. United India Insurance Co.Ltd., 2021 (6) KLT 136, in support of his argument.
6. In the above decision, in paragraph 8, the learned judge held that:
“.....From the materials available on record, it can be seen that, despite the injuries sustained by the appellant, he continued in his employment and the finding of the Tribunal that he has not sustained any loss of earning capacity during the period of his service with the Kerala Water Authority is a probable view. In my view it is a sustainable finding as he could continue in the service upto his retirement age at 56. Consequently, the question of loss of earning power would arise only for the period after his retirement.”
7. Thereafter the learned Judge proceeded to assess the l
Raju Sebastian v. United India Insurance Co.Ltd.
Sarla Verma v. Delhi Transport Corporation
Dinesh Singh v. Bajaj Allianz Genl.Insurance Co.Ltd.
Vimal Kanwar and Others v. Kishore Dan and Others
Robin Babu v. Kunjappan and Others
The multiplier for compensation must reflect the victim's age at the time of the accident, not retirement age, and future prospects should be included in the calculation.
The court emphasized the necessity of applying the multiplier method for assessing compensation in personal injury cases, rejecting the lower multiplier used by the Tribunal and enhancing compensatio....
Compensation for injuries must be just, reflecting the actual impact on earning capacity post-disability, as established by guidelines which necessitate careful consideration of the claimant's specif....
Permanent disability must be evaluated for its impact on future earning capacity, with compensation reflecting marketability and functional impairment, not merely current income stability.
The main legal point established in the judgment is the application of the multiplier method for calculating loss of earning capacity and the consideration of future prospects for self-employed indiv....
Compensation under the Motor Vehicles Act must accurately reflect loss and restore the claimant's position post-accident.
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