IN THE HIGH COURT OF KERALA AT ERNAKULAM
JOHNSON JOHN, J
Lovely Jose Edayadiyil House - Appellant
Versus
Biju B S/o. Baby - Respondent
MACA NO. 2567 OF 2021
Decided On : 05-03-2025
(A) Motor Vehicles Act, 1988 - Compensation for injuries sustained in an accident - The petitioner sought enhancement of compensation awarded by the Tribunal, which was Rs.6,39,960/- - The court found that the Tribunal's notional income of Rs.12,000/- was low and fixed it at Rs.14,000/- based on the petitioner's occupation as a dairy farmer - The court accepted 20% functional disability for calculating loss of earning capacity, contrary to the Tribunal's acceptance of 18% - The court ruled that just compensation must restore the victim to their pre-accident position, including future prospects - The total enhanced compensation awarded is Rs.1,31,440/- with interest at 9% per annum from the date of application. (Paras 7 , 10 , 11 , 13 , 18 )
(B) Principles of compensation - The court emphasized that the assessment of loss of earning capacity must consider the nature of the profession and the impact of disability on work performance. (Paras 9 , 12 )
JUDGMENT :
The petitioner in O.P.(MV) No. 434 of 2019 on the file of the Motor Accident Claims Tribunal-II, Pathanamthitta filed this appeal seeking enhancement of compensation.
2. According to the petitioner, on 11.02.2019, while she was riding a scooter, autorickshaw driven by the 1 st respondent in a rash and negligent manner caused to hit the scooter and thereby, she fell down and sustained serious injuries. The 2 nd respondent is the owner of the offending vehicle and the 3 rd respondent is the insurer.
3. Before the Tribunal, Exhibits A1 to A15 were marked from the side of the petitioner and no evidence adduced from the side of the respondents.
4. The Tribunal arrived at a finding that the accident occurred because of the negligence on the part of the 1 st respondent and that respondents 1 to 3 are jointly and severally liable to pay compensation to the petitioner. The Tribunal awarded a total compensation of Rs.6,39,960/- to the petitioner.
5. Heard Sri. T. K. Koshy, the learned counsel for the appellant and Sri. Rinny Stephen Champarambil, the learned counsel for the respondent insurance company
6. The learned counsel for the appellant argued that the appellant was aged 52 years and earning Rs.18,000/- per month from her occupation as a dairy farmer and agriculturist and the Tribunal fixed a notional income of Rs.12,000/- and the same is on the lower side. It is argued that as per the principles in Ramachandrappa v. Royal Sundaram Alliance Insurance Co.Ltd. [(2011) 13 SCC 236] and Syed Sadiq and Others v. Divisional Manager, United India Insurance Company [(2014) 2 SCC 735 = 2014 KHC 4027], the monthly income fixed is for an ordinary worker and in this case, the appellant is a dairy farmer and agriculturist and in the absence of serious dispute regarding the occupation and considering the fact that documentary evidence may not be available to specifically prove the earnings of a self-cultivating agriculturist, the Tribunal ought to have fixed a higher amount as notional income.
7. In this connection, the learned counsel for the appellant also cited the decision of the Honourable Supreme Court in Rajani v. Oriental Insurance Company Ltd. [2022 (5) KLT SN 41 (C. No. 38) SC], wherein the deceased was a pineapple cultivator and the Honourable Supreme Court held that in such matters, a robust view has to be taken of the quantum of earnings, since documentary evidence may not be available to specifically prove the quantum of earnings of a self-cultivating agriculturist. Therefore, considering the facts and circumstances, I find that it is only reasonable to fix the monthly notional income of the appellant at Rs.14,000/- per month for the purpose of calculating the compensation.
8. The learned counsel for the appellant argued that Exhibit A10 would show that the appellant sustained 20% permanent disability and the Tribunal accepted only 18% functional disability for the purpose of calculating the compensation for loss of earning capacity and the same is on the lower side.
9. In Raj Kumar v. Ajay Kumar , (2011) 1 SCC 343], the Honourable Supreme Court summarised the principles for ascertainment of loss of earning capacity due to permanent disability as follows:
Ramachandrappa v. Royal Sundaram Alliance Insurance Co.Ltd., [(2011) 13 SCC 236]
Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343
National Insurance Co. Ltd. v Pranay Sethi, [(2017) 16 SCC 680]
The court established that just compensation must reflect the victim's pre-accident position, including appropriate notional income and future prospects, considering the nature of the victim's occupa....
The court established that the assessment of compensation must reflect the claimant's actual earning capacity and the impact of permanent disability on future earnings, applying the correct multiplie....
A self employed person between the age group of 40-50 years is entitled to 25% more as future prospects.
The judgment affirms that functional disability and future compensation prospects are critical in assessing damages for injury in accident cases, rejecting arbitrary reductions in disability assessme....
Permanent functional disability significantly impacts compensation for loss of income, and Courts must prioritize accurate income assessment over mere percentage disability.
The court established that compensation for personal injuries must reflect actual income loss and consider the impact of permanent disability on earning capacity.
Injury in accident – Quantum of compensation must be commensurate with degree of disability suffered by victim.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.