High Court of Bombay at Goa Enhances Compensation for Injured Worker in Motor Accident Case — Permanent Disability Assessed at 40% with Multiplier of 18 Applied. The Court held that the Tribunal's assessment of 20% disability was low and applied correct multiplier for loss of future earnings under Section 166 of the Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The appellant, Shrikant Kashinath Gaude, a 25-year-old helper on a wheel loader, was injured in a motor vehicle accident on 29th October 2005 at about 10:30 p.m. After his duty, he was waiting for a vehicle when a Tata tipper truck (No. GA-01-U-7975) stopped. While he was talking to the driver (respondent no.1) by standing on the footrest, the driver suddenly and negligently moved the truck, causing the appellant to fall and sustain severe injuries including fracture of hip bone, pelvis, right medial malleolus, and bladder injury. He was hospitalized at Goa Medical College Hospital, Bambolim from 29th October to 16th November 2005. Due to the injuries, he became permanently disabled and unable to work as a helper or do any hard work. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Margao (Claim Petition No.43 of 2006) seeking compensation of Rs.3,00,000/-. The Tribunal, by judgment and award dated 3rd and 4th April 2008, awarded Rs.1,50,000/- with interest at 6% per annum from the date of petition. The Tribunal assessed permanent disability at 20% and took monthly income as Rs.3,000/-, but applied multiplier of 17 instead of 18. The appellant appealed to the High Court of Bombay at Goa (First Appeal No.64 of 2009) seeking enhancement. The High Court, after hearing both sides, held that the Tribunal erred in assessing disability at 20% and in applying multiplier of 17. Based on medical evidence and the nature of injuries, the High Court assessed permanent disability at 40% and applied multiplier of 18 as per the Second Schedule. The High Court computed compensation as follows: loss of future earnings (Rs.3,000 x 12 x 18 x 40% = Rs.2,59,200/-), medical expenses (Rs.30,000/-), pain and suffering (Rs.50,000/-), special diet and conveyance (Rs.10,000/-), and loss of amenities (Rs.25,000/-), totaling Rs.3,74,200/-. After deducting the awarded amount of Rs.1,50,000/-, the enhanced compensation was Rs.2,24,200/- with interest at 6% per annum from the date of petition. The appeal was partly allowed.

Headnote

A) Motor Accident Claims - Compensation for Permanent Disability - Assessment of Disability - The Tribunal assessed permanent disability at 20% but the High Court enhanced it to 40% based on medical evidence and the nature of injuries including fracture of hip bone, pelvis, and bladder injury, which rendered the claimant unable to perform his previous work as a helper on wheel loader. (Paras 10-12)

B) Motor Accident Claims - Loss of Future Earnings - Multiplier Method - The High Court applied multiplier of 18 based on the age of the claimant (25 years) as per the Second Schedule of the Motor Vehicles Act, 1988, and computed loss of future earnings by taking monthly income of Rs.3,000/- and 40% disability, resulting in Rs.2,59,200/-. (Paras 13-14)

C) Motor Accident Claims - Negligence - Rash and Negligent Driving - The Tribunal found that the driver of the Tata tipper truck (respondent no.1) acted rashly and negligently by suddenly moving the vehicle while the claimant was standing on the footrest, causing him to fall and sustain injuries. The finding of negligence was upheld by the High Court. (Paras 5-6)

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Issue of Consideration

Whether the compensation awarded by the Motor Accident Claims Tribunal for injuries sustained in a motor vehicle accident was just and proper, and whether the assessment of disability and loss of future earnings was correct.

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Final Decision

The appeal is partly allowed. The compensation is enhanced from Rs.1,50,000/- to Rs.3,74,200/-. The appellant is entitled to enhanced compensation of Rs.2,24,200/- with interest at 6% per annum from the date of petition till realization. The respondent no.3 (Insurance Company) is directed to pay the enhanced amount within six weeks.

Law Points

  • Motor Accident Claims
  • Compensation for Permanent Disability
  • Multiplier Method
  • Loss of Future Earnings
  • Negligence in Driving
  • Section 166 Motor Vehicles Act
  • 1988
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Case Details

2020 LawText (BOM) (11) 49

First Appeal No. 64 of 2009

2020-11-06

Smt. M. S. Jawalkar

Mr. V.G.P. Dukle for Appellant, Mr. Amey Kakodkar for Respondents

Shri Shirkant @ Srikant Kashinath Gaude

Shri Suryakant Uttam Gaude, Shri Shivaji Tukaram Naik, The New India Assurance Co. Ltd.

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Nature of Litigation

Appeal against judgment and award of Motor Accident Claims Tribunal in a claim petition for compensation for injuries sustained in a motor vehicle accident.

Remedy Sought

Enhancement of compensation awarded by the Tribunal.

Filing Reason

The appellant was dissatisfied with the quantum of compensation awarded by the Tribunal.

Previous Decisions

The Motor Accident Claims Tribunal, Margao, in Claim Petition No.43 of 2006 awarded Rs.1,50,000/- with interest at 6% per annum.

Issues

Whether the assessment of permanent disability at 20% by the Tribunal was correct? Whether the multiplier of 17 applied by the Tribunal was appropriate? Whether the compensation awarded was just and proper?

Submissions/Arguments

Appellant argued that the Tribunal erred in assessing disability at 20% and in applying multiplier of 17 instead of 18. Respondents supported the Tribunal's award.

Ratio Decidendi

The assessment of permanent disability should be based on the nature of injuries and their impact on the claimant's ability to work. The multiplier should be as per the Second Schedule of the Motor Vehicles Act, 1988 based on the age of the claimant. In this case, 40% disability and multiplier of 18 were appropriate.

Judgment Excerpts

The Tribunal has assessed the permanent disability at 20% which is on lower side. Considering the nature of injuries, the permanent disability is assessed at 40%. The multiplier of 18 is applicable as per the Second Schedule of the Motor Vehicles Act, 1988 for the age group of 25 years.

Procedural History

The appellant filed Claim Petition No.43 of 2006 before the Motor Accident Claims Tribunal, Margao, which was decided on 3rd and 4th April 2008 awarding Rs.1,50,000/-. Aggrieved, the appellant filed First Appeal No.64 of 2009 before the High Court of Bombay at Goa. The appeal was reserved on 23rd October 2020 and pronounced on 6th November 2020.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 166
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