Case Note & Summary
The appellant, Sayeedabi, a 30-year-old labourer (Mukadam), was a passenger in a luxury bus that met with an accident on 15.7.2002 due to rash and negligent driving. She suffered severe injuries resulting in amputation of her left hand from the shoulder joint. She filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation. The Motor Accident Claims Tribunal, Akola, partly allowed the claim and awarded Rs.2,88,850 with interest at 9% p.a. Aggrieved by the inadequacy, the claimant appealed to the High Court. The High Court noted that the claimant was earning Rs.1,500 per month as a labourer. Considering her age (30 years) and the nature of disability (amputation of left hand), the court held that she suffered 100% loss of earning capacity. Applying the multiplier of 17 as per the Second Schedule to the Motor Vehicles Act, the court calculated loss of earning capacity at Rs.3,06,000 (Rs.1,500 x 12 x 17). Additionally, the court awarded Rs.50,000 for medical expenses, Rs.30,000 for pain and suffering, Rs.10,000 for conveyance and special diet, and Rs.10,000 for loss of amenities. The total compensation was enhanced to Rs.4,06,000, with interest at 9% p.a. from the date of petition till realization. The appeal was partly allowed.
Headnote
A) Motor Accident Claims - Compensation for Amputation - Loss of Earning Capacity - Motor Vehicles Act, 1988, Sections 166, 168 - Claimant, a labourer aged 30, suffered amputation of left hand in a bus accident - Tribunal awarded Rs.2,88,850 - High Court held that amputation of left hand results in 100% loss of earning capacity for a labourer, and applied multiplier of 17 with monthly income of Rs.1,500 - Enhanced compensation to Rs.4,06,000 with interest at 9% p.a. (Paras 1-6).
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal for amputation of left hand was inadequate and requires enhancement.
Final Decision
Appeal partly allowed. Compensation enhanced from Rs.2,88,850 to Rs.4,06,000 with interest at 9% p.a. from the date of petition till realization. The enhanced amount to be paid by the Insurance Company within six weeks.
Law Points
- Motor Accident Claims
- Compensation for Amputation
- Loss of Earning Capacity
- Multiplier Method
- Pecuniary and Non-Pecuniary Damages
Case Details
2015 LawText (BOM) (07) 203
First Appeal No.77 of 2005
Mr. C.A. Joshi for the Appellant, Mr. R.R. Raipure for the Respondents
Sayeedabi d/o. Mohd. Husain
Sk. Amir Sk. Munnu, Shabbir Husain Yusuf Ali, National Insurance Company Ltd.
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Nature of Litigation
Appeal against inadequacy of compensation awarded by Motor Accident Claims Tribunal for injuries sustained in a motor vehicle accident.
Remedy Sought
Enhancement of compensation from Rs.2,88,850 to a higher amount.
Filing Reason
Claimant suffered amputation of left hand due to rash and negligent driving of a luxury bus; Tribunal awarded inadequate compensation.
Previous Decisions
Motor Accident Claims Tribunal, Akola, partly allowed Claim Petition No.258 of 2002 on 20.10.2004, awarding Rs.2,88,850 with interest at 9% p.a.
Issues
Whether the compensation awarded by the Tribunal for amputation of left hand is inadequate and requires enhancement.
Submissions/Arguments
Claimant's counsel argued that the claimant was earning Rs.1,500 per month as a labourer, and due to amputation of left hand, she suffered 100% disability. Compensation of Rs.2,88,850 is inadequate; she should get Rs.3,06,000 for loss of earning capacity, Rs.50,000 for medical expenses, Rs.30,000 for pain and suffering, and other heads.
Respondents' counsel supported the Tribunal's award.
Ratio Decidendi
For a labourer who has lost a limb (amputation of left hand), the loss of earning capacity is 100%. The multiplier method as per the Second Schedule to the Motor Vehicles Act, 1988, should be applied. In this case, with monthly income of Rs.1,500 and age 30, multiplier of 17 is appropriate, yielding Rs.3,06,000 for loss of earning capacity. Additional amounts for medical expenses, pain and suffering, conveyance, and loss of amenities are also to be awarded.
Judgment Excerpts
The Tribunal was pleased to partly allow the Claim Application and awarded a sum of Rs.2,88,850/ only including no fault liability as compensation for the injuries suffered by the claimant together with interest @ 9 % p.a.
Considering that the claimant was a labourer (Mukadam) and her age was 30 years, the loss of earning capacity due to amputation of left hand is 100%.
Applying multiplier of 17, the loss of earning capacity is calculated as Rs.1,500 x 12 x 17 = Rs.3,06,000.
Procedural History
Claim Petition No.258 of 2002 was filed before the Motor Accident Claims Tribunal, Akola, which partly allowed it on 20.10.2004. The claimant appealed to the High Court of Bombay, Nagpur Bench, by way of First Appeal No.77 of 2005, which was heard and decided on 27.7.2015.
Acts & Sections
- Motor Vehicles Act, 1988: Sections 166, 168
