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2026 Supreme(Online)(Ker) 23254

IN THE HIGH COURT OF KERALA AT ERNAKULAM
SHOBA ANNAMMA EAPEN, J
PRAKASH R.@ PRAKASAN – Appellant
Versus
UNITED INDIA INSURANCE COMPANY LIMITED – Respondent
MACA NO. 1083 OF 2020|OP(MV) NO.2307 OF 2016



Advocates:
For the Appellants/Petitioners: SRI.RAHUL SASI, SMT.NEETHU PREM
For the Respondents: SHRI.PMM.NAJEEB KHAN

The court highlighted that just compensation should reflect notional income, appropriate deductions for dependents, and adhere to established legal precedents in personal injury claims and compensation calculations.

Headnote:(A) Motor Vehicles Act, 1988 - Claim for compensation - Appeal against the quantum of compensation awarded by the Motor Accidents Claims Tribunal - Claimants sought ₹40,72,750/- limited to ₹25,00,000/-; Tribunal awarded ₹14,11,600/- with 9% interest - Court modified the compensation by refixing notional income, awarding additional amounts under various heads including loss of consortium and loss due to dependency - The compensation was recalculated to provide just compensation keeping in consideration the deceased's age and family circumstances. (Paras 3 to 7)

(B) The court emphasized that when determining compensation under loss of dependency, appropriate deductions should be made based on the number of legal heirs while also considering future prospects. (Paras 5.4 and 5.7)

Facts of the case:
The deceased was involved in a scooter accident with a container lorry leading to grievous injuries resulting in death. The claimants, legal heirs, were dissatisfied with the compensation awarded. (Paras 2 and 3)

Findings of Court:
Modifications made to the originally awarded compensation, resulting in a total additional amount of ₹2,26,100/- with 8% interest. (Paras 7)

Issues: Addressed were the determination of notional income, the calculation of loss of consortium, and the appropriate deductions for personal expenses from the deceased's income. (Paras 5.3 and 5.5)

Ratio Decidendi: The court ruled that a comprehensive and just compensation must be awarded, considering all factors including income, deductions, and dependents, and emphasized adherence to prior rulings regarding compensation calculations. (Paras 6 and 7)

Result: Appeal allowed in part; compensation increased. (End of judgment)

Table of Content
1. establishment of factual background of the accident. (Para 1 , 2)
2. tribunal's award as compensation. (Para 3)
3. arguments regarding compensation enhancement. (Para 4 , 5)
4. court's reasoning regarding compensation. (Para 6)
5. determination of enhanced compensation. (Para 7)

JUDGMENT

This appeal is filed by the claimants in O.P (MV) No.2307 of

2016 on the file of the Motor Accidents Claims Tribunal, Ernakulam dissatisfied with the quantum of compensation awarded by the tribunal. The respondent herein was the 3rd respondent before the tribunal.

2. According to the claimants, on 16.07.2016 at about 07.00 am, while the deceased was riding a scooter bearing reg. No. KL-32-J- 1506, a container lorry bearing registration No.KL-43-C-9063 driven by the 2nd respondent in a rash and negligent manner came from behind and hit the scooter. As a result of the accident the deceased fell down and sustained grievous injuries and succumbed to the injuries on the same day. The claimants, being the legal heirs of the deceased, approached the tribunal claiming a total compensation of ₹40,72,750/- limited to ₹25,00,000/-.

3. The first and second respondent/owner and driver of the offending vehicle remained ex parte before the tribunal. The 3rd respondent/insurer filed a written statement admitting the validity of the policy but disputing the quantum of compensation claimed.

Before the tribunal, Exts.A1 to A10 were marked. The tribunal, after analysing the pleadings and materials on record, awarded a sum of ₹14,11,600/- as compensation under different heads with interest @9% per annum from the date of petition till realization with proportionate costs against the 3rd respondent being the insurer of the offending vehicle. Dissatisfied with the quantum of compensation awarded by the tribunal, the claimants, being the legal heirs of the deceased, have come up in appeal.

4. Heard the learned counsel for the appellants and the learned Standing Counsel for the respondent insurance company.

5. The learned counsel for the appellant claims enhancement mainly under the following heads :-

Notional income :- The learned counsel for the claimants submitted that the tribunal had taken only an amount of ₹12,000/- as the monthly income of the injured who was a house wife as well as a fish vendor.

On the other hand, the learned standing counsel appearing for the insurance company submitted that even going by the judgment in Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. [2011 (13) SCC 236] , the income of a coolie for an accident in the year 2016 is fixed at ₹10,500/- per month and therefore the tribunal has reasonably fixed the income as ₹12,000/-. Considering the fact that she was a housewife as well as a fishvendor, I find that the income fixed by the tribunal is on the lower side. In order to award a just compensation, I find it is appropriate to refix the monthly income as₹ 13,000/-

Damage to clothing and articles : On a perusal of the award, it is seen that, though an amount of ₹25,000/- was claimed under the aforesaid head, the tribunal did not grant any compensation. Considering the fact that the accident occurred in the year 2016, I find it appropriate to award an amount of2,000/-

under the said head.

Loss of consortium/loss of love and affection :- The learned counsel for the appellants submitted that the tribunal has granted only an amount of ₹40,000/- towards loss of consortium. Following the judgment in National Insurance Company Ltd. v. Pranay Sethi [2017 (4) KLT 662 (SC)], since the legal heirs are 4 in number, the claimants are entitled to get a total compensation of ₹1,60,000/- (40,000 x 4) under the head loss of consortium. Thus, there will be an additional amount of1,20,000/- under the head loss of consortium.

The learned standing counsel appearing for the insurance company submitted that an amount of ₹1,50,000/- was awarded by the tribunal under the head loss of love and affection. In New India Assurance Compa

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