Case Note & Summary
The appellant, Bhimrao Shamrao Shinde, was travelling in a tempo trax vehicle on 19 May 1996 when the vehicle met with an accident due to rash and negligent driving, dashing against a roadside tree. The appellant sustained severe injuries including a fracture to his right femur, resulting in 60% permanent disability. He was hospitalized at Yavatmal, Nagpur, and Pune until August 1996. At the time of the accident, he was 37 years old and working as an Agricultural Overseer with a monthly salary of Rs.4,460. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs.6,00,000. The Motor Accident Claims Tribunal, Yavatmal, by judgment dated 28 March 2005, awarded Rs.6,925 for loss of salary for 47 days, Rs.1,03,670 for medical expenses, and Rs.5,000 for mental and physical pains, totaling Rs.1,15,595. Dissatisfied, the appellant appealed for enhancement. The High Court considered the issue of compensation for loss of earning capacity due to permanent disability. The court noted that the appellant's disability was 60% and that his job as an Agricultural Overseer required physical activity, which was impaired. Applying the multiplier method, the court calculated loss of earning capacity as Rs.4,460 x 12 x 15 x 60% = Rs.4,81,680. The court also enhanced the award for pain and suffering from Rs.5,000 to Rs.25,000. The total compensation was enhanced to Rs.6,17,275, with interest at 6% per annum from the date of the claim petition. The appeal was allowed in part.
Headnote
A) Motor Accident Claims - Compensation for Permanent Disability - Loss of Earning Capacity - Motor Vehicles Act, 1988, Section 166 - The appellant suffered 60% permanent disability due to fracture of right femur in a road accident. The Tribunal awarded only medical expenses and loss of salary for 47 days but did not grant compensation for loss of earning capacity. The High Court held that the appellant was entitled to compensation for loss of earning capacity based on his monthly income of Rs.4,460, applying a multiplier of 15 and 60% disability, resulting in an additional award of Rs.4,81,680. (Paras 7-10) B) Motor Accident Claims - Heads of Compensation - Pain and Suffering - Motor Vehicles Act, 1988, Section 166 - The Tribunal awarded only Rs.5,000 for mental and physical pains. The High Court enhanced this amount to Rs.25,000 considering the nature of injuries and prolonged treatment. (Para 11) C) Motor Accident Claims - Medical Expenses - Reimbursement - Motor Vehicles Act, 1988, Section 166 - The Tribunal awarded Rs.1,03,670 towards medical expenses based on bills produced. The High Court upheld this amount as it was supported by evidence. (Para 6)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in not awarding compensation for loss of earning capacity due to permanent disability and whether the compensation granted was just and proper.
Final Decision
Appeal allowed in part. The compensation awarded by the Tribunal is enhanced from Rs.1,15,595 to Rs.6,17,275. The appellant is entitled to interest at 6% per annum on the enhanced amount from the date of the claim petition till realization. The Oriental Insurance Co. Ltd. is directed to deposit the enhanced amount within eight weeks.
Law Points
- Compensation for permanent disability
- Loss of earning capacity
- Multiplier method
- Motor Vehicles Act
- 1988 Section 166
