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2026 Supreme(Ker) 748

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Shoba Annamma Eapen, J.
R.Ramakrishnan – Petitioner
Versus
The Branch Manager, National Insurance Company Limited – Respondent
MACA NO. 581 OF 2020
Decided On : 21-05-2026

Advocates Appeared:
For the Petitioner: Sri.T.K.Biju (Manjinikara)
For the Respondent: Shri.Kiran Peter Kuriakose

In motor accident claims, appellate courts must re-evaluate the quantum of compensation to ensure it is just and reasonable by rectifying errors in the determination of notional income, application of relevant multipliers, and ensuring all relevant heads of compensation, including loss of amenities, are addressed.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 and 173 - Motor accident - Quantum of compensation - Enhancement of compensation - Notional income in 2010 accident case - Court re-fixed notional income from Rs. 3,500/- to Rs. 8,000/- based on profession of photographer - Tribunal calculation of loss of earnings and permanent disability revised due to incorrect multiplier application - Multiplier of 9 applied for 59-year-old injured based on established legal precedents - Loss of amenities in life awarded where tribunal failed to grant specific head - Interest determined at 7% per annum on enhanced amount, excluding delay period. (Paras 3, 5 and 6)

(B) Appellate Jurisdiction - Courts are duty-bound to evaluate evidence and legal principles to ensure just and reasonable compensation - Interference allowed where tribunal’s assessment is flawed regarding notional income and multiplier application. (Para 6)

Facts of the case:
The claimant was involved in a motor accident while riding a motorcycle which was hit by another vehicle. The claimant sustained serious injuries, including fractures, and sought compensation. The tribunal awarded Rs. 1,25,500/- in compensation. Being dissatisfied with the quantum, the claimant filed an appeal seeking enhancement.

Findings of Court:
The court enhanced the total compensation to Rs. 3,40,000/-, resulting in an additional amount of Rs. 2,14,500/-. The court re-fixed the monthly income, re-calculated loss of earnings based on five months of disability, and corrected the multiplier applied to the permanent disability component.

Issues: Whether the tribunal’s calculation of notional income, loss of earnings, and multiplier for permanent disability was justified, and whether the claimant is entitled to an enhancement of compensation.

Ratio Decidendi: The court held that compensation must be just and reasonable, requiring the alignment of notional income with the deceased or injured party's profession and the application of appropriate multipliers consistently with established constitutional court precedents. The failure of the tribunal to award compensation under specific heads like loss of amenities necessitated appellate intervention.

Result: Appeal allowed in part.

Table of Content
1. factual context of motor accident compensation claims. (Para 2 , 3)
2. enhancement of compensation heads: income, disability, and multipliers. (Para 4 , 5)
3. appellate modification of compensation and interest orders. (Para 6 , 7)

JUDGMENT :

Shoba Annamma Eapen, J.

This appeal is filed by the claimant in O.P(MV) No.1461 of 2011 on the file of the Motor Accidents Claims Tribunal, Pathanamthitta, claiming enhancement of compensation. The respondent herein is the third respondent before the tribunal.

2. According to the claimant, on 19.04.2010, at about 2.00 p.m., while the claimant was riding a motorcycle bearing registration No.KL-2/D-4502 through Adoor – Keerukuzhy public road, another motorcycle bearing registration No.KL- 26/A-4199 ridden by the second respondent in a rash and negligent manner hit against the backside of the motorcycle ridden by the claimant and as a result, he sustained serious injuries. The claimant approached the tribunal claiming a total compensation of Rs.3,00,000/-.

3. The first, second and third respondents were the owner, driver and the insurer of the offending vehicle respectively. The third respondent, insurer, filed a written statement admitting the insurance policy but disputing the liability and quantum of compensation claimed. Before the tribunal, Exts.A1 to A14 were marked. The tribunal, after analysing the pleadings and materials on record, found that the accident was due to negligence on the part of the second respondent and the claimant was awarded a sum of Rs.1,25,500/- as compensation under different heads with interest @ 9% per annum from the date of petition till realization against the respondent – insurer. Dissatisfied with the quantum of compensation awarded by the tribunal, the claimant has come up in appeal.

4. I have heard the learned counsel for the appellant and the learned standing counsel for the respondent insurer.

5. The learned counsel for the appellant claims enhancement mainly under the following heads:

I. Notional Income

The learned counsel for the appellant submitted that the injured was working as a photographer. Though it is stated in the F.I.S. that he was a photographer, the tribunal had taken the notional monthly income only as Rs.3,500/- wherein the amount claimed was Rs.9,000/-. Even going by the judgment in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. [2011 (13) SCC 236], the notional monthly income of a coolie for an accident in the year 2010 is fixed as Rs.7,500/-. However, considering the fact that the injured was a photographer by profession, I find it appropriate to re-fix the income as Rs.8,000/-.

II. Loss of earnings

The learned counsel for the appellant submitted that the tribunal has not awarded any amount towards loss of earnings.Following are the injuries sustained by the appellant:

i) Comminuted fracture of right tibia with right lateral malleolus fracture.

ii) Delayed union right tibia with implant (4.5mm DCP) –Bone grafting done

iii) Fracture of both bones of right leg

iv) Multiple injuries all over the body

Considering the nature of injuries sustained by the appellant, I find that a period of five months can be taken for awarding compensation under the said head. Since the notional monthly income has been re-fixed at Rs.8,000/-, the total compensation payable under the head loss of earnings would be Rs.40,000/- (8,000 x 5).

III. Extra nourishment

The learned counsel for the appellant submitted that the tribunal had granted an amount of Rs.3,000/- for thirty three days in-patient treatment. Considering the year of accident as well as the period of hospitalisation, I am inclined to grant a consolidated amount of Rs.5,000/- for thirty three days in-patient treatment. Hence there will be an additional enhancement of Rs.2,000/- under the afore head.

IV. L oss of amenities in life

On a perusal of the award, it is seen that no separate compensation was awarded by the tribunal under the head loss of amenities in life. Considering t

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