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HIGH COURT OF KERALA
K VINOD CHANDRAN, J
SHEEJA BERNAD, – Appellant
Versus
THE DIVISIONAL MANAGER, – Respondent
MACA 3884 2019
Compensation - Appeal for enhancement - Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. - Compensation structure and notional income adjustment - Interest on awarded amounts.
Fact of the Case:
An appeal was filed seeking an enhancement of compensation awarded by a tribunal, particularly focusing on the adjustment of notional income and additional compensation for loss of amenities following an incident.
Finding of the Court:
The court agreed to enhance the compensation for notional income to Rs.10,000 and added Rs.5,000 for loss of amenities, along with other claims, ultimately endorsing the Tribunal's disability assessment.
Issues: Whether the compensation awarded by the tribunal should be enhanced, particularly regarding notional income and loss of amenities?
Ratio Decidendi: The court ruled that the notional income can be increased as per legal precedent, and additional amounts for amenities are justified, confirming the tribunal's calculated enhancements.
Final Decision: The appeal for enhancement of compensation is allowed, raising the total compensation to Rs.5,89,550.
JUDGMENT
The appeal is filed for enhancement of compensation.
2. The enhancement is possible only in the notional income, which as perRamachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. : [(2011) 13 SCC 236], can be increased to Rs.10,000/-. An additional amount of Rs.5,000/- is also added to the compensation for loss of amenities. The disability assessed by the Board at 20% was reduced to 15% by the Tribunal. Hence, the disability assessed by the Board can be adopted. The learned Standing Counsel for the insurance company agrees for the same. Enhancement is granted as per the following tabulation :
| Sl. No. | Head of Claim | Amount awarded by the Tribunal Rs | Total amount after enhancement in appeal Rs |
| Income/ Notional Income | 8000 | 10000 | |
| 1 | Loss of earnings | 24000 | 30000 (10000 x 3) |
| 2 | Transport to hospital | 2000 | 2000 |
| 3 | Extra nourishment | 3750 | 3750 |
| 4 | Damage to clothing | 1000 | 1000 |
| 5 | Medical expenses | 149050 | 149050 |
| 6 | Bystanders's expenses | 3750 | 3750 |
| 7 | Pain and sufferings | 30000 | 30000 |
| 8 | Compensation for permanent disability | 216000 | 10000 x 15 x 12 x 20/100 = 360000 |
| 9 | Loss of amenities/ enjoyment of life | 5000 | 10000 |
| Total | 4,34,550 | 5,89,550 | |
| Amount enhanced -Rs.5,89,550 – Rs.4,34,550 = Rs.1,55,000/- |
4. The Insurance Company shall pay interest for the amounts awarded by the Tribunal at the rate directed in the impugned award and for the enhanced amounts at the rate of 5% from the date of petition. If any amounts have already been paid, the same shall be granted set off. The claimant(s) shall produce the details of the Bank account before the Insurance Company/Tribunal within one month from the date of receipt of a certified copy of this judgment and amount shall be transferred to the Bank account directly through NEFT/RTGS mode within a period of one month thereafter. If the Bank account is not given within the time stipulated, it is made clear that no interest shall run on the enhanced amount after the period stipulated by this Court. However, if the Insurance Company fails to deposit the amount as directed, interest on the enhanced amount shall also run at the rate ordered by the Tribunal from the date of petition.
The appeal is allowed to the above extent.
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