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2026 Supreme(Online)(Ker) 19500

IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.B. SNEHALATHA, J
PRABHAKARAN B.N – Appellant
Versus
THE BRANCH MANAGER, THE NATIONAL INSURANCE COMPANY LTD. – Respondent
MACA NO. 3701 OF 2018 | OPMV NO.126 OF 2016



Advocates:
For the Appellants/Petitioners: SRI.I.V.PRAMOD, SRI.K.V.SASIDHARAN
For the Respondents: SRI.ABHIJETT LESSLI

The court emphasized that failure to account for permanent disability in compensation calculations constitutes an oversight, warranting enhancement of the total award.

Headnote:(A) Motor Vehicles Act, 1988 - Jurisdiction of appellate courts to review compensation awards - The appellant sought enhancement of the compensation of ₹1,05,550/- awarded by the Tribunal, citing severe injuries and disability. The Tribunal's failure to provide compensation for determined permanent disability is identified as a significant oversight. (Paras 3, 10, 13)

(B) Determination of Disability Compensation - The permanent disability was certified at 28%. The court determined functional disability for compensation calculations to be 5%. Issues arise surrounding the adequacy and fairness of the compensation awarded. The 30% future prospects were factored into the appellant's earnings based on employment details. (Paras 8, 10, 12)

(C) Legal Principles on Compensation and Liability - The insurer was deemed liable for the enhanced award, calculated with interest from the petition's date. Compensation of ₹2,43,461/- was awarded specifically for permanent disability. (Paras 10, 13)

Facts of the case:
The claimant was in a motorcycle accident caused by negligent driving of an insured vehicle; he sustained serious injuries resulting in permanent disability.

Findings of Court:
The court modified the Tribunal's award, ruling that the appellant is entitled to ₹2,43,461/- for disability, maintaining the remaining compensation as determined by the Tribunal.

Issues: Whether the award for compensation adequately reflects the appellant's grievous injuries and disability.

Ratio Decidendi: Failure by the Tribunal to account for awarded disability in compensation necessitates a reassessment, which must include future prospects in earnings.

Result: Appeal allowed in part; enhanced compensation awarded.

Table of Content
1. accident details and claim for compensation. (Para 1 , 2 , 5)
2. claimant's arguments for compensation enhancement. (Para 4 , 10)
3. court analysis of injury and compensation. (Para 9 , 11)
4. court's final order and procedures. (Para 12 , 13 , 14)

JUDGMENT

Appellant who is the claimant in O.P(MV) No.126/2016 of Motor Accident Claims Tribunal, Kasaragod [hereinafter referred to as ‘the Tribunal] has filed this appeal seeking enhancement of the compensation awarded by the Motor Accident Claims Tribunal, Kasaragod.

2. Appellant's/claimant's case is that on 14.02.2014 at 7 p.m while was he was riding a motorcycle bearing registration No.KL-14-C 5028 and when it reached at Nalam Mile a car bearing registration No.KL-14-F-6018 hit on his motorcycle. The accident occurred due to the rash and negligent driving of R1 in the O.P, who was the driver of the offending car. R2 in the O.P is the owner of the said car and R3 in the O.P is the insurer of the said vehicle.

3. By the impugned award, a sum of ₹1,05,550/- with 9%

interest from the date of petition was awarded by the Tribunal. Dissatisfied with the quantum of compensation, appellant/claimant has preferred this appeal contending that appellant who suffered grievous injuries was awarded only a meager sum as compensation by the Tribunal and the compensation awarded is not a just compensation. It was contended that though there is a definite finding that the appellant sustained 28% disability no compensation was awarded on that head. It was also contended the compensation awarded under all heads are very meager.

4. Now let us see whether the appellant/claimant is entitled to enhanced compensation.

5. It is an undisputed fact that the appellant met with a motor vehicle accident on 14.02.2014. Likewise, the case of the appellant that the accident occurred due to the rash and negligent driving of R1 in the O.P who was the driver of the offending car bearing registration No.KL-14-F-6018 is also not in dispute.

6. Admittedly the offending vehicle was insured with R3 in the O.P.

7. Appellant was a permanent employee of Kerala State Electricity Board (KSEB). Ext.A6 is the salary certificate.

8. Ext.A3 wound certificate and Ext.A4 discharge summary would show that appellant sustained fracture of shaft of right humerus middle third, abrasion over the right second toe with avulsion of nail. Ext.X1 report of the Medical Board would show that appellant sustained 28% permanent locomotor disability in relation to the right upper limb due to limitation of range movements of the right shoulder and right elbow.

9. The Tribunal has not awarded any sum under the head compensation for permanent disability. The salary certificate produced by the claimant would show that he was a permanent employee of KSEB and his gross salary was ₹53,398/-. As he was a permanent employee of KSEB, the question of loss of earning power would arise only for the period after his retirement. The percentage of disability certified by the medical board was with respect to a particular limb. Therefore, taking into account the fact that he sustained 28% permanent locomotor disability in relation to the right upper limb due to limitation of range movements of the right shoulder and right elbow, the functional disability is taken as 5% for the purpose of assessing the compensation on account of permanent disability.

10. As per Ext.A6 salary certificate, out of the gross salary of ₹53,398/-, an amount of ₹5,379/- is seen deducted towards income tax. Therefore, the salary after deducting income tax is ₹48,019/- (53,398 – 5,379). The victim was 46 years old at the time of accident. Therefore, 30% of the income is to be added towards future prospects ( National Insurance Co. Ltd. v. Pranay Sethi [(2017) 16 SCC 680] . If 30% is thus added to this amount, the amount would come to ₹62,425/- (48,019+14406). His notional income after retirement is taken as 50% of the said amount. Therefore, the income can be taken as ₹31,213/- (62,42

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