SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Ker) 2055

IN THE HIGH COURT OF KERALA AT ERNAKULAM 
JOHNSON JOHN, J.
Reliance General Insurance Co.Ltd. - Appellant 
Versus 
Salila - Appellant 
M.A.C.A Nos. 271 & 953 of 2020
Decided on : 12-03-2025

Advocates:
Advocate Appeared:
For the Appellant : ADV. SRI. TAPAS VARMA
For the Respondent: SRI.T.K.KOSHY, SRI.B.RAJESH (KOTTAYAM), SRI.SABU I.KOSHY

The court reaffirmed that minimum wages for skilled workers apply in compensation calculations, allowing for additional compensation based on established legal principles regarding dependency, pain, and suffering.

Headnote:(A) Motor Vehicles Act, 1988 - Compensation for loss of dependency - Notional income of deceased fixed as Rs. 15,600/- per month based on Kerala Fair Wages Act - Tribunal's award of Rs. 9,02,030/- appealed against - The claim petitioners argued that minimum wages for skilled workers should be applied for fixing the income - Court upheld the Tribunal's multiplier of 7 and adjusted the compensation accordingly - Pain and suffering awarded at Rs. 10,000/- - Loss of consortium and love and affection not separately compensable as held in Supreme Court decisions - Additional compensation of Rs. 1,40,572/- awarded with interest at 9% p.a. from date of application. (Paras 5, 10, 11)

Table of Content
1. circumstances of the accident and compensation awarded. (Para 1 , 2 , 3)
2. court's assessment of compensation and legal justifications. (Para 4 , 6 , 8 , 11)
3. arguments on compensation calculations and legal precedents. (Para 5 , 7 , 9 , 10)

JUDGMENT :

JOHNSON JOHN, J.

These appeals are filed by the 2nd respondent insurance company and the claim petitioners challenging the quantum of compensation fixed by the Tribunal as per award dated 25.09.2019 in O.P.(MV) No. 941 of 2017 on the file of the Motor Accident Claims Tribunal, Pathanamthitta.

2. The claim petitioners are the legal heirs of the deceased Pankajakshan, who died in a motor vehicle accident. According to the petitioners, on 28.05.2017 while the deceased was driving an autorickshaw, car driven by the 1st respondent in a rash and negligent manner caused to hit the autorickshaw and thereby, the deceased sustained serious injuries and subsequently succumbed to his injuries, while undergoing treatment in the hospital. The 1st respondent is also the owner of the offending vehicle and the 2nd respondent is the insurer.

3. Before the Tribunal, Exhibits A1 to A10 were marked from the side of the petitioners and no evidence adduced from the side of the respondents. The Tribunal arrived at a finding that the accident occurred because of the negligence on the part of the 1st respondent and that respondents 1 and 2 are jointly and severally liable to pay compensation to the petitioners. The Tribunal awarded a total compensation of Rs.9,02,030/- to the petitioners.

4. Heard Sri. Tapas Varma A., the learned counsel for the appellant insurance company and Sri. T.K. Koshy, the learned counsel for the appellant claim petitioners.

5. The learned counsel for the appellants/claim petitioners argued that the deceased was aged 65 years and he was driving his own autorickshaw at the time of accident and for the reason that no document is produced to prove the income of the deceased, the Tribunal fixed only a notional income of Rs.13,000/- and the same is on the lower side. It is argued that the occupation of the deceased as an autorickshaw driver is not seriously disputed and therefore, the Tribunal ought to have accepted the minimum wages of a skilled worker for fixing the income of the deceased. In this connection, the learned counsel for the appellants cited the decision of the Honourable Supreme Court in Manusha Sreekumar and Others v. United India Insurance Co. Ltd. , [2022 KHC 7106], wherein it was held as follows in paragraph 20:

“20. Schedule B - Category III of the Kerala Fair Wages Act classifies a driver as a “Skilled worker”. Reading this in conjunction with the Notification that came into effect from 01/01/2015 which amended Schedule A of the Kerala Fair Wages Act , prescribing a minimum pay scale of the workers listed in Schedule B, it is apparent that a 'driver' in Kerala earned a minimum of Rs. 15,600/- in 2015. It appears to us that the aforesaid Act and the notification issued thereunder were not brought to the notice of the Tribunal or the High Court. As a result thereto, the High Court could not be cognizant of the statutory mandate prescribing minimum wages for a skilled worker like 'driver', and thus, erred in fixing the income of the Deceased at Rs.10,000/-. We are therefore inclined to fix the income of the Deceased notionally at Rs. 15,600/- per month.”

In view of the minimum wages of a skilled worker in Kerala, I find that the monthly notional income of the deceased can be fixed at Rs.15,600/- for the purpose of calculating the compensation.

6. The Tribunal accepted 7 as the multiplier applicable and deducted one-third of the income towards personal and living expenses of the deceased by following the decision of the Honourable Supreme Court in Sarla Varma v. Delhi Transport Corporation [2010 (2) KLT 802 (SC)] and the same is not under challenge. Thus, while re assessing the compensation for loss of dependency as per the revised criteria, the amount w

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top