Case Note & Summary
The case involves an appeal by Bajaj Allianz General Insurance Co. Ltd. against the judgment and award dated 02.06.2010 of the Motor Accident Claims Tribunal (MACT) in Claim Petition No.102/2005. The claimant, Chandan Tulsidas Gauthankar, met with an accident on 10.07.2005 while riding his Hero Honda motorcycle when a Maruti car bearing registration no.GA-01-S-0566 dashed him. He sustained serious injuries resulting in 20% disability and was unable to report for duties at the Directorate of Accounts, Government of Goa for 825 days, where he was employed as a Records Sorter earning Rs. 9,427/- per month. The MACT awarded compensation of Rs. 6,28,425/- with 9% interest from the date of application. The insurance company appealed, contending that there was no evidence of rashness or negligence and that the compensation was excessive. The court examined the evidence and found that the claimant continued in government service without any reduction in salary despite the disability. The court held that compensation for loss of earning capacity cannot be awarded merely on the basis of disability percentage; actual loss of income must be proved. The court reduced the compensation by deleting the amount awarded for loss of earning capacity but upheld other heads such as pain and suffering, medical expenses, and interest rate. The appeal was partly allowed, reducing the total compensation.
Headnote
A) Motor Accident Compensation - Loss of Earning Capacity - Assessment - Claimant sustained 20% disability but continued in government service without reduction in salary - Held that compensation for loss of earning capacity cannot be awarded merely on basis of disability percentage; actual loss of income must be proved (Paras 6-10). B) Motor Accident Compensation - Pain and Suffering - Quantum - MACT awarded Rs. 1,00,000 for pain and suffering - Held that amount is reasonable and not excessive (Para 11). C) Motor Accident Compensation - Medical Expenses - Reimbursement - Claimant incurred medical expenses of Rs. 1,50,000 - Held that reimbursement of actual medical expenses is justified (Para 12). D) Motor Accident Compensation - Interest Rate - 9% per annum - Held that interest rate of 9% from date of application till payment is reasonable (Para 13).
Issue of Consideration
Whether the compensation awarded by the MACT for loss of earning capacity is excessive when the claimant continued in government service without any reduction in salary despite 20% disability.
Final Decision
Appeal partly allowed. Compensation reduced by deleting amount awarded for loss of earning capacity. Other heads of compensation and interest rate upheld.
Law Points
- Compensation for loss of earning capacity requires actual loss of income
- not mere disability
- Section 170 Motor Vehicles Act
- 1988 allows insurer to contest on merits if owner/driver fails to defend
- Interest rate of 9% per annum is reasonable.
