Case Note & Summary
The appellant, Sanjaybhai Somabhai Tadvi, was a cleaner/conductor on an Eicher truck. On 02.01.2016, the truck driven rashly and negligently collided with a stationary truck, causing the appellant to be trapped in the cabin, resulting in grievous injuries to both legs, which were later amputated below the knee. He filed MACP No.121/2020 before the Motor Accident Claims Tribunal (Auxi.), Dabhoi, seeking compensation. The Tribunal held the driver of the Eicher truck solely negligent and awarded Rs. 11,59,100/-. Aggrieved by the quantum, the appellant filed the present appeal under Section 173 of the Motor Vehicles Act, 1988. The main issues were whether the Tribunal erred in assessing the claimant's monthly income at Rs. 5,500/- instead of Rs. 11,000/-, and in not considering 100% functional disability for future loss of income. The appellant argued that his income was Rs. 11,000/- per month and that due to amputation of both legs, he suffered 100% functional disability, relying on Mohd. Sabeer v. U.P. SRTC. The respondent insurance company supported the Tribunal's award. The High Court held that in the absence of documentary evidence, a notional income of Rs. 8,000/- per month is appropriate for a cleaner/conductor in 2016. It further held that functional disability should be assessed at 100% as the claimant cannot perform his occupation. Applying multiplier 18 (age 22), future loss of income was computed as Rs. 17,28,000/-. The Court also enhanced awards for artificial limb (Rs. 5,00,000/-), loss of amenities (Rs. 1,00,000/-), and other heads. The total compensation was recalculated at Rs. 24,28,000/- with interest at 7.5% per annum from the date of petition. The appeal was partly allowed.
Headnote
A) Motor Vehicles Act - Compensation - Assessment of Income - Notional Income - The Tribunal assessed the claimant's monthly income at Rs. 5,500/- based on minimum wage, but the High Court held that considering the nature of work (conductor/cleaner) and the year of accident (2016), a notional income of Rs. 8,000/- per month is appropriate, applying the principle that courts should not be overly conservative in assessing income in the absence of documentary evidence (Paras 5-6). B) Motor Vehicles Act - Compensation - Functional Disability - 100% Disability - The claimant suffered amputation of both legs below the knee, resulting in 100% functional disability as he cannot work as a cleaner/conductor. The High Court, relying on Mohd. Sabeer v. U.P. SRTC, held that functional disability should be assessed at 100% for loss of future income, not the physical disability percentage (Paras 7-9). C) Motor Vehicles Act - Compensation - Future Loss of Income - Multiplier - Applying the multiplier of 18 (age 22) and 100% functional disability, the future loss of income is computed as Rs. 8,000 x 12 x 18 = Rs. 17,28,000/-. The Tribunal's award of Rs. 9,50,400/- under this head is set aside (Paras 10-11). D) Motor Vehicles Act - Compensation - Artificial Limb - Loss of Amenities - The High Court awarded Rs. 5,00,000/- for artificial limb (considering need for periodic replacement) and Rs. 1,00,000/- for loss of amenities, enhancing the Tribunal's awards of Rs. 50,000/- and Rs. 25,000/- respectively (Paras 12-13). E) Motor Vehicles Act - Compensation - Total Compensation - The High Court recalculated the total compensation as Rs. 24,28,000/- with interest at 7.5% per annum from the date of petition, enhancing the Tribunal's award of Rs. 11,59,100/- (Paras 14-15).
Issue of Consideration
Whether the Tribunal erred in assessing the claimant's monthly income at Rs. 5,500/- instead of Rs. 11,000/- and in not considering 100% functional disability for computing future loss of income, and whether the compensation awarded is just and proper.
Final Decision
The appeal is partly allowed. The impugned judgment and award is modified. The appellant is entitled to total compensation of Rs. 24,28,000/- with interest at 7.5% per annum from the date of petition till realization. The insurance company is directed to deposit the enhanced amount within eight weeks.
Law Points
- Motor accident compensation
- functional disability
- future loss of income
- notional income
- artificial limb cost
- loss of amenities
