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2026 Supreme(Online)(Ker) 62424
IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.M. Manoj, J
Rituparna – Appellant
Versus
United India Insurance Co. Ltd. – Respondent
MACA NO. 2012 OF 2017 | MACA NO. 1415 OF 2017
For the Appellants/Petitioners: T.V. George, Jimmy George (Thadathil), Linda George, Krishna S., Vinod Peter
For the Respondents: Mathews Jacob (Sr.), P. Jacob Mathew
Important Points
Subject
Motor Accident Claims - Quantum of Compensation
Act Referred
Headnote
(B) Notional Income - Where a claimant is a postgraduate (MBA) with high academic records, a notional monthly income of ₹25,000/- is reasonable, considering the impact of a permanent limb loss on managerial career prospects (Paras 20, 21).
(C) Functional Disability - Physical disability assessed by a Medical Board may be enhanced to functional disability by considering the nature of the occupation. For a managerial role requiring both upper limbs, a functional disability of 70% is justified even if the physical disability is 50% (Paras 22, 28).
(D) Future Prospects - A claimant below 40 years of age is entitled to an addition of 40% toward future prospects based on established legal principles (Para 30). (E) Future Treatment Expenses - Compensation for prosthetic limbs must be realistic and future-oriented, accounting for periodic maintenance and replacement costs to ensure the claimant can maintain dignity and independence (Paras 34, 35).
Facts of the case:
An MBA graduate pillion rider sustained grievous injuries resulting in the amputation of her left upper limb due to a rashly driven lorry. The Tribunal awarded compensation, which was challenged by both the claimant (for inadequacy, particularly regarding future prospects) and the Insurance Company (challenging the notional income, disability percentage, and future treatment costs).
Findings of Court:
The court upheld the notional income of ₹25,000/- and the functional disability at 70% given the claimant's career aspirations. It enhanced the future prospects from 15% to 40% and slightly increased attendant expenses, while ruling that interest on future treatment expenses should only run from the date of the award.
Issues: Whether the notional income of ₹25,000/- was excessive; whether the functional disability should be 70% or 50%; whether the claimant was entitled to 40% future prospects; and whether the award for future prosthetic maintenance was excessive.
Ratio Decidendi: The court reasoned that functional disability must be assessed based on the impact of the injury on the specific earning capacity and nature of the claimant's profession. It affirmed that the principle of restitution in integrum requires compensation for prosthetic limbs to include recurring maintenance and replacement costs.
Result: Appeals disposed of by enhancing compensation by ₹9,48,900/-.
CR
JUDGMENT
Dated this the 29th day of July, 2026
These appeals are preferred against the award dated 31.01.2017 in O.P.(M.V.) No.1650/2011. M.A.C.A. No.1415/2017 is preferred by the Insurance Company, the 3rd respondent before the Tribunal, being aggrieved by the excessive compensation awarded by the Tribunal. M.A.C.A. No.2012/2017 is preferred by the claimant, being aggrieved by the inadequacy of the compensation awarded, particularly under the head of future prospects.
2. The brief facts of the case are as follows:
While the claimant was travelling as a pillion rider on a scooter bearing registration No.KA-04-EE-8790 from Kakkanad to Kadavanthra through the Seaport-Airport Road on 31.12.2010, a lorry bearing registration No.KL-07-G-3128, driven by the 2nd respondent in a rash and negligent manner, hit the scooter. The lorry ran over the left hand of the claimant, causing grievous injuries, including amputation of her left upper limb. The claimant contended that the accident occurred solely due to the rash and negligent driving of the 2nd respondent. The 3rd respondent, being the insurer of the o therefore liable to indemnify the owner. The claimant restricted her claim to ₹80,00,000/-.
3. Respondents 1 and 2, the driver and owner of the offending vehicle, remained ex parte. The 3rd respondent filed a written statement admitting the validity of the insurance policy as on the date of the accident, but disputing its liability to indemnify the owner on the ground of violation of the policy conditions. It was also contended that the accident occurred due to the negligence of the rider of the scooter on which the claimant was travelling.
4. On considering the rival contentions, the Tribunal framed issues regarding the cause of the accident, the injuries sustained, the entitlement to compensation, the quantum of compensation and the liability to pay the same. In support of her claim, the claimant was examined as PW1 and Exts.A1 to A24 and X1 were marked. The Tribunal found that the accident occurred due to the negligent driving of the offending lorry by the 2nd respondent and awarded a total compensation of ₹78,54,800/-.
5. Aggrieved by the quantum of compensation, the Insurance Company preferred M.A.C.A. No.1415/2017.
6. The learned Senior Counsel appearing for the Insurance Company contended that the Tribunal committed an error in fixing the monthly income of the claimant at ₹25,000/-. It is contended that Ext.A13 only establishes her educational qualification. Ext.A15 indicates that she had completed the Derivatives Market (Dealers) Module of NCFM in July 2009, while Exts.A17 and A18 relate to her MBA course and establish her additional qualifications. However, according to the learned Senior Counsel, Ext.A20, relied upon by the claimant to prove her income, is not her salary certificate, but a document relating to one of her colleagues who was junior to her. In the circumstances, it is contended that the Tribunal ought not to have fixed the notional monthly income at ₹25,000/- and that an income of ₹12,500/- alone could have been adopted.
7. It is further contended that, as per Ext.X1 disability certificate, the Medical Board assessed the disability of the claimant at 50%, whereas the Tribunal assessed her functional disability at 70%. According to the learned Senior Counsel, even going by the table under the Workmen's Compensation Act, the disability could not have been assessed beyond 50%. The fixation of disability at 70% is therefore challenged.
8. The fixation of ₹17,80,000/- towards future treatment expenses is also challenged. It is contended that the Tribunal had already considered the bills relating to the prosthetic limb, particularly Bill Nos.40, 41 and 42, and awarded ₹10,52,000/- towards the same. Therefore, according to the learned Senior Counsel, a further amount of ₹17,80,000/- towards future treatment expenses is excessive. It is also contended that the said amount ought to carry interest only from the date of the award
