Heads of Compensation
IN THE HIGH COURT OF JUDICATURE AT MADRAS
NISHA BANU, J.
V. Srinivasan (died) - Appellant
Versus
E. Shankar & Another - Respondent
C.M.A. No.2930 of 2012
Decided On : 22-06-2022
Motor Vehicles Act - Compensation for injury - Section 173 - MCOP.No.3757/2007 - The court discussed the compensation for injury under the Motor Vehicles Act, 1988, and the application of the multiplier method in determining just compensation for the injured. The court emphasized the consideration of suffering of the mind, shortening of life expectancy, loss of earning capacity, and permanence of the disability in fixing compensation.
Fact of the Case:
The injured claimant sought enhancement of compensation for injuries sustained in a motor vehicle accident. The tribunal had awarded compensation, but the claimant appealed for enhancement due to the severity of the injuries and resulting disability. Subsequently, the injured claimant passed away, and the legal heirs were brought on record.
Finding of the Court:
The court found that the injured sustained severe injuries resulting in disability, loss of earning capacity, and mental strain, leading to an unusual deprivation of earning. The court applied the multiplier method to determine just compensation and enhanced the compensation from Rs.3,79,500 to Rs.9,78,500.
Issues: The issues revolved around the adequacy of the compensation awarded for the injuries sustained, the application of the multiplier method, and the consideration of the claimant's disability and loss of earning capacity.
Ratio Decidendi: The court emphasized the consideration of suffering of the mind, shortening of life expectancy, loss of earning capacity, and permanence of the disability in fixing compensation. The court also adopted the multiplier method to determine just compensation for the claimant's disability and loss of earning power.
Final Decision: The court partly allowed the appeal and enhanced the compensation from Rs.3,79,500 to Rs.9,78,500, directing the respondents to deposit the enhanced compensation with interest at 7.5% per annum and cost as awarded by the court.
JUDGMENT
(Prayer: CMA filed under Section 173 of Motor Vehicles Act, 1988, against the award passed by the MACT (Small Causes Court No.III) Chennai, in MCOP.No.3757/2007 dated 27.04.2012.)
1. This appeal is filed originally by the injured claimant seeking enhancement of compensation. Subsequently, on the death of the injured claimant, legal heirs of the deceased were brought on record.
2. The brief facts of the case is that on 05.08.2007 at 21.00 hours, when the claimant was traveling as pillion rider in a Motor cycle bearing Reg.No.TN-20-L-5562 from Pallavaram to Kandigai, the first respondent’s Tata Sumo Van bearing Reg.No.TN-09-K-9797 coming in the opposite direction in a rash and negligent manner hit the petitioner, thereby, the petitioner sustained grievous injures. The claimant claimed Rs.10,00,000/- as compensation for the injuries in MCOP.No.3757 of 2007.
3. The Tribunal after elaborate trial, answered the issues that due to rash and negligent driving of the 1st respondent’s vehicle driver, the accident took place. The first respondent, being the owner of the offending vehicle and the 2nd respondent, being the insurer of the vehicle, the tribunal held that 1st and 2nd respondents are jointly and severally liable to pay compensation to the injured.
4. Insofar as quantum of compensation is concerned, at the time of accident, the injured petitioner was 31 years, working as Technical Assistant in Hakkim Leather Company and was earning Rs.4,500 /- per month.
5. Going by Ex.P.2 Discharge summary, it is evident that injured was treated as inpatient in Government General Hospital, Chennai, for a period of 71 days and had undergone surgery. Even thereafter, taken continuous treatment in private hospital and undergone surgery. Totally, petitioner underwent 5 surgeries. Ex.P.2 shows that petitioner sustained fracture of right femur, dislocation of right hip and compound fracture of both bones right leg.
6. P.W.2 Doctor was examined and his testimony was that petitioner sustained partial permanent disability for fracture of right femur, shortening of right leg by 3 inch and petitioner is limping and facing difficulty to squat, to stand and climb stairs and there is disfigurement and not in a position to do any work. Ex.P.14-disability certificate assessing the disability as 60% has been marked.
7. The Tribunal, going by disability certificate and photo Ex.P.11 of the petitioner, fixed Rs.2000/- per percentage of disability and for 60% disability, Rs.1,20,000/- has been granted. The compensation granted by the Tribunal on all the heads is as under:-
| Heads of Compensation | Amount Awarded |
| Loss of income for 10 months | 45,000.00 |
| Transportation | 6,000.00 |
| Extra nourishment | 5,000.00 |
| Damage to clothes | 500.00 |
| Medical expenses | 58,000.00 |
| Future medical expenses | 20,000.00 |
| Attender charges | 5,000.00 |
| Loss of amenities of life and mental agony to the petitioner | 10,000.00 |
| Pain and suffering | 10,000.00 |
| Disability of 60% at the rate of Rs.2000/- per percentage | 1,20,000.00 |
| Loss of earning power | 1,00,000.00 |
| Total compensation | 3,79,500.00 |
8. The injured claimant has filed this appeal for enhancement. It has been stated that the injured was about 31 years at the time of accident and he had a family and he has to support his children. But due to accident, his future got crippled and it is impossible for him to do any kind of work much less manual work to earn a decent living. It was averred that there was disfigurement of right leg besides shortening of right leg and it requires further treatment.
9. The learned counsel for the appellants submitted that applying multiplier method for the disability would have given a just compensation for the injured. But the tribunal failed to adopt multiplier method in this case. Learned counsel prayed for just compensation by way of enhancement.
10. Heard both sides.
11. A perusal of entire materials available on record would go show that the
The main legal point established in the judgment is the application of the multiplier method in determining just compensation for disability and loss of earning capacity under the Motor Vehicles Act,....
The court clarified that compensation for permanent disability must utilize the multiplier method, ensuring accurate reflection of future earnings and establishing clear guidelines for calculating da....
In motor accident injury claims, distinguish physical disability percentage from functional loss of earning capacity; apply multiplier method assessing impact on victim's profession and age for equit....
The court enhanced compensation for injuries sustained in a motorcycle accident, recalibrating income and disability assessments based on legal precedents.
The court emphasized the need for adequate compensation reflecting permanent disability and income loss in motor accident claims.
The impact of disability on earning capacity and the re-evaluation of compensation under different heads based on the appellant's hospitalization and surgeries.
The court applied the Rights of Persons with Disability Act, 2016 and the judgment of the Hon'ble Supreme Court in SARLA VERMA & OTHER v. Delhi Transport Corporation & Another to determine the loss o....
The Court applied the multiplier method and adjusted notional income based on legal precedents to determine fair compensation for disability and loss of earnings.
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