IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
The New India Assurance Co. Ltd.,Salem – Appellant
Versus
K. Subramani & Others – Respondents
C.M.A. No. 1215 of 2020 & C.M.P. No. 7785 of 2020
Decided On : 11-07-2023
Motor Vehicles Act, 1988 - Compensation for Permanent Disability - Section 173 - [PERMANENT DISABILITY] - [Motor Vehicles Act, 1988, Section 173] - The court discussed the compensation awarded for permanent disability and the assessment of functional disability. It highlighted the consideration of future prospects and the application of the multiplier '16' based on the age of the injured. The court modified the compensation awarded by the Tribunal based on the assessment of functional disability and future prospects.
Fact of the Case:
The appellant filed a Civil Miscellaneous Appeal to set aside the decree and judgment made in M.C.O.P.No.469 of 2018 on the file of the Motor Accident Claims Tribunal (Special Sub Court), Erode. The appeal challenged the compensation awarded towards permanent disability due to an accident that occurred on 07.06.2018, where the claimant, a lorry driver, was injured.
Finding of the Court:
The court found that the Tribunal had awarded compensation for the entire disability of 61%, considering it as permanent disability. However, the court observed that the claimant was able to drive the vehicle as evidenced by the renewed driving license. The court modified the compensation for functional disability and future prospects based on the age of the injured.
Issues: The issues revolved around the assessment of functional disability, consideration of future prospects, and the application of the multiplier '16' based on the age of the injured in determining the compensation for permanent disability.
Ratio Decidendi: The court's decision was based on the assessment of the claimant's ability to drive, the consideration of future prospects, and the application of the multiplier '16' to compute the compensation for permanent disability.
Final Decision: The Civil Miscellaneous Appeal was partly allowed, and the appellant/insurance company was directed to deposit the additional amount, if any, based on the revised award. The Tribunal was directed to transfer the entire amount to the claimant within a specified period.
JUDGMENT
(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, to set aside the decree and judgment dated 03.09.2019 made in M.C.O.P.No.469 of 2018 on the file of the Motor Accident Claims Tribunal (Special Sub Court), Erode.)
1. This Civil Miscellaneous Appeal is filed to set aside the decree and judgment dated 03.09.2019 made in M.C.O.P.No.469 of 2018 on the file of the Motor Accident Claims Tribunal (Special Sub Court), Erode.
2. The learned counsel appearing for the appellant would submit that he is merely challenging with regard to the compensation awarded towards the permanent disability. Further, he would contend that due to the accident occurred on 07.06.2018, the claimant, who was a lorry driver, was injured and the disability was assessed by Doctor at 61%. The Court below had held that he cannot drive in future and had taken the entire disability of 61% as functional disability and awarded a sum of Rs.17,57,000/- for loss of earning power. However, it appears that the had renewed his driving license recently and the Transport Department will not renew the driving license without confirming the performance of the driver. Hence, it is clear that now he is in a position to drive. A copy of the renewed driving license of the claimant has also been produced before this Court.
3. Further, the learned counsel would submit that when such being the case, the Tribunal should not have taken into consideration the partial disability as functional disability and at least it should have taken 1/3rd of the partial disability as functional disability. Therefore, he would request this Court to award 20% as functional disability for the purpose of compensation for loss of earning power.
4. The learned counsel for the claimant would request this Court to take 30% of functional disability into consideration. However, he had also made a further request to add 20% future prospects, if this Court is inclined to take 20% as functional disability.
5. Heard the learned counsel appearing for the insurance company as well as the claimant and also perused the materials available on recored.
6. No doubt that in the present case, the claimant had sustained injuries. However, at the time of accident, which was occurred in the year 2018, the injured was a lorry driver. Further, it appears that the Tribunal had taken into consideration a sum of Rs.15,000/- as notional income. As contended by the learned counsel for the insurance company, while passing the award, the Tribunal had awarded the compensation for entire disability of 61%, by determining the same as permanent disability. A perusal of the driving license, provided by the learned counsel for the insurance company, would show that now the claimant is able to drive the vehicle.
7. Under these circumstances, this Court is of the considered view that whatever suggested by the learned counsel for the insurance company is just and fair and the Tribunal should not have awarded compensation for the entire disability of 61%, by determining the same as permanent disability. Therefore, this Court is inclined to award the compensation for 20% of his functional disability and proceed to take the notional income of the injured as Rs.15,000/-. However, the Court below had not awarded any compensation in respect of future prospects. Therefore, this Court is of the considered view that since the age of the injured is 34 years at the time of accident, as held by the Hon''ble Supreme Court in National Ins. Co. v. Pranay Sethi & others reported in 2017 (2) TNMAC 609 (SC), the further prospects has to be added to an extent of 40%. If 40% future prospects is added, the notional income of the injured will be computed as below: Rs.15,000 (income) + Rs.6,000 (40% of the income) =Rs.21,000
8. Hence, the loss of income due to disability will be a sum of Rs.4,200/- (Rs.21,000*20%) per m
The main legal point established in the judgment is the assessment of functional disability, consideration of future prospects, and the application of the multiplier '16' based on the age of the inju....
The assessment of disability and determination of compensation should consider the multiplier method and relevant Supreme Court judgments.
The court has the authority to modify the compensation awarded by the Tribunal based on the assessment of disability, loss of earning capacity, and other relevant factors.
The main legal point established in the judgment is the application of principles for assessing loss of future earning capacity and determining compensation under the Motor Vehicles Act, 1988, based ....
Nature of injuries sustained by the first respondent/claimant has not been disputed by the Appellant Insurance company.
The court has the authority to enhance compensation if it deems the awarded amount to be meagre.
The court has the authority to enhance compensation if it deems the awarded amount to be meager and can direct the Insurance Company to deposit the determined amount with accrued interest to the cred....
The main legal point established is the application of the multiplier method and consideration of the claimant's occupation and permanent disability to assess and enhance the compensation.
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