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2022 Supreme(Online)(KER) 62680
HIGH COURT OF KERALA
P.SOMARAJAN, J
RAVEENDRAN – Appellant
Versus
THE NATIONAL INSURANCE CO LTD. – Respondent
MACA/257/2018
SRI.JACOB SEBASTIAN SRI.K.V.WINSTON, SRI.P.JACOB MATHEW
The application of notional income and future profit percentages is critical in calculating compensation for loss of life, as established by previous case law.
Headnote:
Compensation - Victim's Compensation - Notional Income - Tribunal Assessment - Future Profits
Fact of the Case:
The dispute involves the compensation amount awarded to the family of a victim who died in 2014, with issues surrounding the notional income and calculation of future profits.
Finding of the Court:
The court found that the Tribunal erred in calculating the future profits and applied the correct notional income, leading to an adjustment in the total compensation amount.
Issues: Whether the Tribunal correctly calculated the notional income and future profits for compensation due to the victim’s death.
Ratio Decidendi: The court emphasized the need for a proper application of notional income and percentage for future profits in determining compensation, referencing prior judgments for guidance.
Final Decision: The appeal is allowed; the compensation is modified to Rs. 14,51,600 with interest.
JUDGMENT
The dispute is pertaining to the notional income applied by the Tribunal in the assessment of compensation to the victim who was aged 25. The appellants are the father, mother and sister of the deceased victim. The victim died in the year 2014. Hence, an amount of Rs.8,000/- can be fixed as the notional income in view of the legal position settled inRamachandrappa v. Manager, Royal Sundaram Alliance Insurance Company Ltd. ( 2011 (13) SCC 236 ). So the appellants are entitled to an amount of Rs.12,09,600/-. The parents are also entitled to Rs.40,000/- each by way of consortium. The Tribunal has also committed an error by applying 50% instead of 40%, by way of future profits. Hence, the award of the Tribunal will stand modified as follows:-
| Sl. No | Head of claim | Amount claimed (in Rupees) | Amount awarded (in Rupees) | Basic vital details in a nutshell |
| 1 | Loss of earning (total) | |||
| 2 | Loss of earning (partial) | |||
| 3 | Medical and Miscellaneous expenses | 3500 | 7000 Supported by Ext.A17 series | |
| 4 | Future treatment | |||
| 5 | Bystander expenses | |||
| 6 | Transportation expenses | 15000 | 5000 Towards transport and ambulance charges | |
| 7 | Extra nourishmentq | |||
| 8 | Damage to clothing etc | |||
| 9 | Pain and suffering | 10000 | 25000 Towards the pain and suffering | |
| 10 | Loss of dependency | 700000 | 1209600 (8000+3200 =11200 |
| income | 11200x50/1 00= 5600 5600x12x18 =1209600 | |||
| 11 | Loss of consortium | 80000 Rs.40000x2 | ||
| 12 | Loss of love and affection | 50000 Towards the loss of love and affection | ||
| 13 | Loss of estate | 25000 | 50000 Towards the loss of estate | |
| 14 | Loss/reduction in earning capacity | |||
| 15 | Loss of amenities and conveniences | |||
| 16 | Funeral expenses | 30000 | 25000 As | per Hon'ble Supreme Court decision in Rajesh v. Rajbir Singh. |
| Total | 1451600 With | interest @9% per annum & proportion ate cost. |
The amount awarded by the Tribunal will stand modified to Rs. 14,51,600/-(Rupees fourteen lakhs fifty one thousand six hundred only). It will carry the interest @9% per annum from the date of petition till the date of respective deposits and proportionate cost thereof. The amount already deposited shall be adjusted. There shall not be any modification regarding the apportionment granted by the Tribunal.
The appeal is allowed accordingly. No further costs.
