Motor Accident Claim: SC Restores Higher Compensation Award Of Tribunal To Man Who Suffered 85% Disability After Accident
The Supreme Court in a motor accident claim case has restored the higher compensation award that was granted to a man who met with an accident and suffered 85% disability.
The two-Judge Bench of Justice Abhay S. Oka and Justice Rajesh Bindal held, “It is not a matter of dispute that a person with his right leg amputated cannot perform the duty of a gunman. This is his functional disability. He was 50 years & 5 months old at the time of accident. Considering the aforesaid facts, in our view, the Tribunal was right in assessing the loss of earning capacity of the appellant at 100% and assessing the compensation accordingly.”
The Bench said that the High Court was in error in reducing the loss of earning capacity to 80%, relying upon its judgment despite a judgment of the Apex Court on the issue.
Advocate Geetanjali Mohan represented the appellant while Advocate Chander Shekhar Ashri represented the respondents.
In this case, the appellant who was working as a gunman in a hotel met with an accident in 2013 with Tempo as a result of which he suffered injuries and remained hospitalised for around one month and ten days. He remained under follow-up treatment for about a year and suffered 85% disability in relation to his right lower limb as the same had to be amputated.
The Motor Accident Claims Tribunal awarded a compensation of Rs. 34,29,800/- and as the vehicle was insured, the liability was put on the insurance company. The appellant’s salary was Rs. 20,774/- and due to the amputation, his services were terminated on account of inability to discharge his duties. While taking his functional disability at 100% with reference to the job on which he was employed, compensation of Rs. 30,84,800/- was awarded. However, on an appeal by the insurance company, the High Court reduced the compensation to Rs. 28,43,000/-.
The Supreme Court after hearing the contentions of the counsel noted, “The issue required to be considered in the present appeal falls in a very narrow campus. It is with the reference to the functional disability of the appellant for the purpose of assessment of compensation. The fact remains that he suffered injuries in a road accident on account of which his right lower limb was amputated. This resulted in permanent disability.”
The Court further noted that as per the photograph of the appellant appearing in the disability certificate, his right leg has been amputated above the knee and that his income, age, and other factors are not in dispute.
“In fact, any physical disability resulting from an accident has to be judged with reference to the nature of the work being performed by the person who suffered disability. The same injury suffered by two different persons may affect them in different ways. Loss of leg by a farmer or a rickshaw puller may be end of the road as far as his earning capacity is concerned. Whereas, in case of the persons engaged in some kind of desk work in office, loss of leg may have lesser effect”, observed the Court.
The Court said that there is an error in the order passed by the High Court in calculating the compensation.
“The compensation awarded by the Tribunal was taken on ₹ 33,34,800/-. Reducing a sum of ₹ 4,92,205/- therefrom, the compensation was assessed at ₹ 28,43,000/- (rounded off). However, total compensation awarded by the Tribunal was ₹ 34,29,800/- and not ₹ 33,34,800/-”, also observed the Court.
Accordingly, the Court allowed the appeal, set aside the order of the High Court, and restored the award passed by the Tribunal.
Cause Title- Sarnam Singh v. Shriram General Insurance Co. Ltd. & Ors.
