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2026 Supreme(Online)(Ker) 18526

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MRS. SHOBA ANNAMMA EAPEN, J
NATIONAL INSURANCE COMPANY LIMITED – Appellant
Versus
SIVADASAN – Respondent
MACA NO. 2063 OF 2016|OPMV NO.257 OF 2013



Advocates:
For the Appellants/Petitioners: ADV SHRI.SEBASTIAN VARGHESE
For the Respondents: SRI.K.M.JAMALUDHEEN, SMT.LATHA PRABHAKARAN

The court modified the compensation awarded by the Tribunal, emphasizing the need for justified calculations, particularly concerning loss of income due to disability and appropriate allowances for pain and suffering.

Headnote:(A) Motor Vehicles Act, 1988 - Claims under motor accident compensation - The insurer challenges the compensation awarded by the Tribunal as excessive - The claimant sustained serious injuries due to the negligence of the driver. (Para 3)

(B) Future prospects - The Tribunal added future prospects of 20% to the claimant's income without valid reasoning. The court recalculated the loss of income and adjusted the pain and suffering compensation with additional amounts deemed appropriate for the nature of injuries sustained. (Paras 5 and 6)

(C) The total adjusted compensation to ₹5,51,616 with interest at 9% per annum from the date of petition. (Para 7)

Facts of the case:
The claimant was walking along the road when struck by a motorcycle, resulting in serious injuries and a claim for compensation. The insurer admitted the policy but contested the compensation amount. Finding of Court: The court modified the Tribunal’s award, adjusting amounts for loss of income, pain, suffering, and loss of amenities.

Issues: The main issues included the calculation of compensation focusing on future loss of income and the adequacy of pain and suffering award.

Ratio Decidendi: The court found the addition of future prospects unjustified, underscoring the need for just and reasonable compensation based on the severity of injuries.

Result: Appeal allowed in part; total compensation adjusted to ₹5,51,616.

Table of Content
1. claimant was injured due to motorcycle accident. (Para 1 , 2 , 3)
2. court hears arguments from both parties. (Para 4)
3. challenge to compensation quantum and recalculation. (Para 5 , 6)
4. altered compensation awarded with specific orders. (Para 7)

JUDGMENT

This appeal is filed by the 3rd respondent insurer in O.P.

(MV) No.257 of 2013 on the file of the Motor Accidents Claims Tribunal, Kozhikode, challenging the quantum of compensation awarded by the tribunal. The 1st respondent herein was the claimant and respondents 2 and 3 were the respondents 1 and 2 before the tribunal.

2. The case of the claimant is that on 04.10.2012 at about 9.30 am, while the claimant was walking along the side of the Kannur road, a motorcycle bearing Reg. No.KL-11-AN- 2973 driven by the 2nd respondent in a rash and negligent manner, hit the claimant, whereby he sustained serious injuries. The claimant approached the tribunal claiming compensation.

3. The respondents 1 and 2/the owner and the driver of the offending vehicle, respectively remained ex parte before the tribunal. The third respondent/insurer filed a written statement admitting the policy but denying the quantum of compensation claimed. Before the tribunal, Exts.A1 to A10 and C1 were marked. The Tribunal, after analysing the pleadings and materials on record, held that the accident took place on account of the negligence of the rider of the offending vehicle and awarded a total compensation of ₹5,87,250/- as compensation under different heads with interest @9% per annum from the date of petition till realization, against the 3rd respondent, being the insurer. Challenging the quantum of compensation awarded, the 3rd respondent insurer has come up with this appeal.

4. Heard the learned Standing Counsel for the insurer and the learned Counsel for the claimant.

5. The claimant claims enhancement mainly under the following heads :-

Loss of income due to disability:- The learned Standing Counsel appearing for the insurance company submitted that the claimant had sustained only 18% disability as per Ext.C1 disability certificate. However, the tribunal while awarding compensation, added 20% future prospects to the income fixed. On a perusal of the award, it is seen that no reasons have been stated by the tribunal for adding 20% future prospects to the income fixed. It is clearly stated in the award that there was no loss of earnings and the income was considered on the basis of the returns filed by the claimant. I do not find any reason to interfere with the income fixed. However, the addition of future prospects appears to be without any valid reasons. Accordingly, I find that the compensation paid under the head loss of income by adding 20% future prospects is to be recalculated. Accordingly, by deleting the future prospects, the compensation payable under the head loss of income due to disability is recalculated as thus; ₹3,78,170/- (1,90,995 x 11x 18/100) is the total compensation payable. Since the tribunal has awarded an amount of ₹4,53,804/- under the afore head, an amount of75,634/- is hereby deducted under the said head.

Pain and suffering:- On a perusal of the award, it is seen that though an amount of ₹1,00,000/- was claimed, the tribunal had taken only an amount of ₹20,000/- towards pain and suffering. The claimant sustained a comminuted fracture of both bone middle 1/3 left leg. It is true that the claimant has not filed any appeal or cross objection challenging the quantum of compensation, since the Motor Vehicles Act being a beneficial legislation, in order to award a just and reasonable compensation, I find it appropriate to award a total amount of ₹40,000/- towards pain and suffering. Since the tribunal has awarded only an amount of ₹20,000/- under the afore head, considering the nature of injuries sustained, I find that the amount awarded by the tribunal is on the lower side and I find it appropriate to award an additional amount of20,000/- under the head pain and

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