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2025 Supreme(Ker) 1032

IN THE HIGH COURT OF KERALA AT ERNAKULAM
EASWARAN S., J.
Akash, S/o. Binu - Appellant 
Versus 
The National Insurance Co. Ltd - Respondents 
MACA No. 2685 of 2021
Decided on : 14-02-2025

Advocates:
Advocate Appeared:
For the Appellant : BY ADV RINU. S. ASWAN
For the Respondent: BY ADV SEBASTIAN VARGHESE

IMPORTANT POINT
Minimum wage rates must be adhered to when calculating notional income for compensation in motor accident claims, and disability percentages cannot be reduced without proper justification.

Headnote:

(A) Motor Vehicles Act, 1988 - Sections 166 and 168 - Claim for compensation due to an accident involving a motorcycle and a tipper lorry - Tribunal fixed notional income at Rs.9,000/- despite claimant's assertions of earning Rs.15,000/- per month - Appeal sought to enhance compensation based on actual income and disability - Court found tribunal's decision unsustainable due to failure to consider claimant's qualifications and evidence of 90% permanent disability. (Paras 3 , 6 , 7 )

(B) Compensation Calculation - The court emphasized that minimum wage rates must be adhered to when calculating notional income, as established in relevant case law. (Paras 2 , 4 , 5 )

(C) Disability Assessment - The court ruled that tribunals cannot reduce disability percentages without cogent reasons, reaffirming the necessity of adhering to medical assessments. (Paras 6 , 7 )

Facts of the case:

The claimant, a coolie worker, was injured in an accident on 14.10.2017 and claimed compensation based on his alleged income and disability. The tribunal granted insufficient compensation, leading to the appeal.

Findings of Court:

The court found that the claimant's notional income should be fixed at Rs.18,900/- per month, with a 100% disability assessment, resulting in enhanced compensation.

Issues: The main issues include the adequacy of the compensation awarded, the claimant's actual income, and the assessment of permanent disability.

Ratio Decidendi: The court held that the tribunal erred by not considering the claimant's qualifications and the high percentage of disability, thus necessitating a recalculation of compensation.

Result: Appeal allowed; enhanced compensation awarded totaling Rs.98,00,550/- with interest.

JUDGMENT :

The claimant in OP(MV) No.1462/2017 on the files of Motor Accidents Claims Tribunal, Neyyattinkara is the appellant herein.

2. The facts for the disposal of the appeal are as follows:-

On 14.10.2017 at about 9.45 a.m., while the claimant was riding his motorcycle bearing registration No.KL-01/AR-5501 from Panachamoodu to Vellarada and when he reached near panchayat office, Panachamoodu, a tipper lorry bearing registration No.KL- 17/P-9717 came from the opposite direction hit against the motorcycle of the claimant. Immediately, the claimant was taken to the Medical College Hospital, Karakkonam and thereafter was referred to Medical College Hospital, Thiruvananthapuram, where he was admitted and treated. The claimant contended that he is a coolie worker and was earning a sum of Rs.15,000/- per month. In support of his contentions, the appellant/claimant produced Exts.A1 to A55 documents. On behalf of the insurance company, copies of the driving licence and insurance policy were marked as Exts.B1 and B2, respectively. No oral evidence was adduced on the side of either parties. In the light of the injuries suffered by the appellant/claimant, the claim for permanent disability was raised based on Ext.A37 certificate of disability issued from General Hospital, Thiruvananthapuram.

3. The tribunal, on appreciation of evidence, found that the claimant could not adduce evidence to prove his income and therefore proceeded to fix the notional income at Rs.9,000/- per month and granted the following compensation:

Sl. No.Head of claimAmount claimed (In Rs.)Amount allowed (In Rs.)Basic vital details in a nut shell
1Loss of earnings15,00,000/-90,000/-9,000 x 10 months
2Transportation expenses40,000/-15,000/-
3Extra nourishment50,000/-30,000/-
4Damage to clothing5,000/-3,000/-
5Medical expenses5,00,000/-80,000/-
6Bystander' expenses and future bystander's expenses50,000/- 5,00,000/-42,000/-
7Pain and sufferings10,00,000/ -2,00,000/-
8Compensation for loss of future earning power7,00,000/-16,32,960/-12,600x12x18x 60/100
9Loss of amenities and enjoyment in life7,00,000/-2,00,000/-
10Permanent disability15,00,000/---
11Compensation for disfiguration5,00,000/-1,00,000/-
12Future prospects5,00,000/---
Total23,92,960/- (Rounded to Rs.23,93,000/-)Rs.23,63,000/- with 8% interest per annum from 26.12.2017 till realisation

4. Aggrieved by the insufficiency in the grant of compensation, the claimant has approached this Court with the present appeal.

5. Heard Sri.Rinu S.Aswan, the learned counsel appearing for the appellant/claimant, and Sri.Sebastian Varghese, learned counsel appearing for the insurance company.

6. On consideration of the rival submissions raised across the bar, this Court is of the considered view that the appellant is entitled to succeed for the following reasons:

1. The accident occurred on 14.10.2017. The tribunal proceeded to fix the notional income of the claimant at Rs.9,000/-, as though he is a coolie worker, in the absence of any documentary evidence to support the income claimed in the claim petition. A reading of the award impugned in the appeal also disclosed the same. But, however, the said finding is contrary to the evidence on record. A reading of the FIS, annexed along with Ext.A4 FIR, shows that the claimant himself has disclosed that he is an ITI diploma holder and was going for wiring works. Therefore, while fixing the income, the avocation of the claimant has a serious bearing which will ultimately affect the quantum of the compensation granted under the head permanent disability and, therefore, this Court finds that the finding rendered by the tribunal in this regard is unsustainable and liable to be interfered with.

2. In Angad Tiwari v. National Insurance Company Ltd. [Civil Appeal No.10950/2024 dated 01.10.2024 : 2024 KHC 8590], the Hon'ble Supreme Court held that while fixing the national income, the court shall not fix the income below the minimum wage fixed under the Minimum Wages Act.

3. By G.O.(P) No.56/2017/Fin dated 28.

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