Case Note & Summary
The appeal was filed by the National Insurance Company Limited challenging the judgment and award dated 04.02.2008 passed by the II Additional Civil Judge (Senior Division) and Additional Motor Accidents Claims Tribunal, Hubli, in MVC No.464/2004. The Tribunal had awarded compensation of Rs.7,56,125/- with interest at 6% per annum to the claimant, respondent No.1, who was injured in a motor vehicle accident on 28.01.2004. The claimant, a tanker driver earning about Rs.6,000 per month, suffered injuries to both legs, face, eyebrows, and left upper arm, was hospitalized for over a month, and incurred medical expenses of Rs.50,000. The Medical Practitioner assessed whole body disability at 55%. The Tribunal, however, opined that there was 100% loss of earning capacity because the claimant could no longer work as a driver due to the injuries. The Insurance Company contended that the Tribunal erred in treating the loss of earning capacity as 100% without proper basis. During the appeal, the entire compensation amount was deposited, and the claimant withdrew 50% without prejudice. The High Court framed the short question of whether the Tribunal was justified in assessing 100% loss of earning capacity based solely on the claimant's avocation. The Court held that the Tribunal's approach was erroneous and that loss of earning capacity must be assessed based on medical evidence. The Court set aside the award and remanded the matter to the Tribunal for fresh assessment of loss of earning capacity, directing the Tribunal to consider the medical evidence and determine the appropriate percentage. The appeal was allowed in part, and the parties were directed to appear before the Tribunal on 12.01.2015.
Headnote
A) Motor Accident Claims - Loss of Earning Capacity - Assessment of Disability - The Tribunal had assessed 100% loss of earning capacity based on the claimant's avocation as a driver, despite medical evidence of 55% whole body disability. The High Court held that the Tribunal's approach was erroneous and that loss of earning capacity must be assessed based on medical evidence and not solely on the nature of avocation. The matter was remanded for fresh assessment. (Paras 4-5)
Issue of Consideration
Whether the Tribunal was justified in assessing loss of earning capacity at 100% solely on the ground that the claimant was no longer capable of carrying on his avocation as a driver, despite medical evidence assessing whole body disability at 55%.
Final Decision
Appeal allowed in part. The judgment and award dated 04.02.2008 passed in MVC No.464/2004 is set aside. The matter is remanded to the Tribunal for fresh assessment of loss of earning capacity. The Tribunal shall consider the medical evidence and determine the appropriate percentage of loss of earning capacity. The parties are directed to appear before the Tribunal on 12.01.2015. The amount already withdrawn by the claimant shall be subject to adjustment in the final award.
Law Points
- Loss of earning capacity
- Assessment of disability
- Motor Vehicles Act
- 1988
- Section 173(1)
- Remand for reassessment
