Why Supreme Court enhanced compensation payable to road accident victim who suffered 50% disability

Case

The appeal was filed by the claimant who suffered a disability in a motor accident. The Tribunal awarded an amount of Rs 2.12 lakh which was enhanced by the high court to Rs 2.23 lakh.

The counsel for the claimant submitted that the appellant was employed as a salesman and was earning Rs 8000. He argued that the tribunal only considered an amount of Rs 3,300 as his monthly income.

It was further contended that the reduction of the disability quotient to 40 per cent was without any valid cause.

Findings

While the claim petition was filed mentioning Section 163A (special provisions as to payment of compensation on structured formula basis) of the Motor Vehicles Act, 1988, the court noted that the pleadings clearly alleged rash and negligent driving by the transport corporation’s bus and that the compensation claimed exceeded the statutory limits under Section 163A.

The Court, therefore, held that the claim ought to be treated as one under Section 166 (application for compensation) of the Act.

On the issue of income, the Court observed that although the claimant had asserted that he was earning Rs 8,000 per month as a salesman, no documentary evidence was produced to substantiate the claim.

The Court fixed the claimant’s monthly income at Rs 5,000 and applied a multiplier of 17, considering his age of 27 years, with an addition of 40 per cent towards future prospects.

“We are of the opinion that the income of the appellant, hence can be safely computed at Rs.5,000/- (Rupees five thousand) per month and the appellant being of the age of 27 years, the multiplier applicable would be 17,” the court said.

The Court also disapproved of the High Court’s decision to reduce the functional disability from 50 per cent to 40 per cent in the absence of any appeal by the insurance company. It held that the High Court’s interference with the disability assessment was improper and restored the tribunal’s finding of 50 per cent disability.

The court assessed the loss of income at Rs 7.14 lakh. The amounts awarded under conventional heads such as pain and suffering were left undisturbed.

The Court directed the respondent to pay the enhanced compensation within three months.