Case Note & Summary
The appellant, M. Paramesh, a 30-year-old mason, was severely injured in a road accident on 18.04.2017 when a lorry hit his bicycle on NH-7 near Anaipalayam PACE Bank. He suffered grievous injuries including to his head, jaw, eye, and right leg, which was subsequently amputated above the knee. The Motor Accident Claims Tribunal awarded Rs. 10,84,330/- as compensation. On appeal, the High Court enhanced it to Rs. 23,86,320/- with 7.5% interest. The appellant then appealed to the Supreme Court seeking further enhancement. The Supreme Court examined the assessment of functional disability, noting that the claimant, a mason, could no longer work due to the amputation. The Court held that functional disability should be 100% rather than the 70% physical disability assessed. It assessed notional income at Rs. 11,000/- per month based on minimum wages, added 40% future prospects, applied a multiplier of 17, and awarded Rs. 1,00,000/- for pain and suffering, Rs. 2,00,000/- for medical expenses, Rs. 1,00,000/- for loss of amenities, and Rs. 50,000/- for future medical expenses. The total compensation was recalculated at Rs. 33,13,600/- with interest at 7.5% per annum from the date of claim petition. The appeal was allowed accordingly.
Headnote
A) Motor Accident Compensation - Functional Disability - Assessment of Functional Disability for Amputation - Motor Vehicles Act, 1988, Section 166 - Where a claimant, a mason by profession, suffered amputation of his right leg above the knee, the functional disability should be assessed at 100% as he can no longer perform his avocation as a mason. The court held that the High Court erred in adopting the same percentage as the physical disability (70%) without considering the loss of earning capacity. (Paras 8-12) B) Motor Accident Compensation - Loss of Earning Capacity - Future Prospects - Motor Vehicles Act, 1988, Section 166 - The court held that future prospects of 40% should be added to the notional income of a self-employed mason aged 30 years, following the principles laid down in National Insurance Co. Ltd. v. Pranay Sethi. (Para 13) C) Motor Accident Compensation - Notional Income - Assessment for Unorganized Sector Worker - Motor Vehicles Act, 1988, Section 166 - In the absence of proof of income, the court assessed the notional income of the claimant at Rs. 11,000/- per month based on the minimum wages for a mason in Tamil Nadu at the time of the accident. (Para 13) D) Motor Accident Compensation - Multiplier - Selection of Multiplier - Motor Vehicles Act, 1988, Section 166 - For a claimant aged 30 years, the appropriate multiplier is 17 as per the decision in Sarla Verma v. Delhi Transport Corporation. (Para 13) E) Motor Accident Compensation - Heads of Compensation - Pain and Suffering, Medical Expenses, etc. - Motor Vehicles Act, 1988, Section 166 - The court awarded compensation under various heads including pain and suffering (Rs. 1,00,000/-), medical expenses (Rs. 2,00,000/-), loss of amenities (Rs. 1,00,000/-), and future medical expenses (Rs. 50,000/-), in addition to loss of earning capacity. (Paras 14-15)
Issue of Consideration
Whether the High Court erred in assessing functional disability at 70% instead of 100% for a mason whose leg was amputated above the knee, and whether the compensation awarded was just and fair.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and enhanced the compensation to Rs. 33,13,600/- with interest at 7.5% per annum from the date of claim petition. The respondent-insurer was directed to deposit the enhanced amount within eight weeks.
Law Points
- Compensation for permanent disability
- functional disability assessment
- loss of earning capacity
- multiplier method
- future prospects
- notional income for unorganized sector worker
