Case: M. Gopalakrishnan Vs. The United India Insurance Company Limited &amp; Another

money can do so, in a fair, reasonable and equitable manner. The court or the Tribunal shall have to assess the damages objectively and exclude from consideration any speculation or fancy, though some conjecture with reference to the nature of disability and its consequences, is inevitable. A person is not only to be compensated for the physical injury, but also for the loss which he suffered as a result of such injury. This means that he is to be compensated for his inability to lead a full life, his inability to enjoy those normal amenities which he would have enjoyed but for the injuries, and his inability to earn as much as he used to earn or could have earned. The heads under which compensation is awarded in personal injury cases are the following: Pecuniary damages (Special damages) (i) Expenses relating to treatment, hospitalisation, medicines, transportation, nourishing food, and miscellaneous expenditure. (ii) Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising: (a) Loss of earning during the period of treatment; (b) Loss of future earnings on account of permanent disability. (iii) Future medical expenses. Non-pecuniary damages (General damages) (iv) Damages for pain, suffering and trauma as a consequence of the injuries. (v) Loss of amenities (and/or loss of prospects of marriage). (vi) Loss of expectation of life (shortening of normal longevity). In routine personal injury cases, compensation will be awarded only under heads (i), (ii)(a) and (iv). It is only in serious cases of injury, where there is specific medical evidence corroborating the evidence of the claimant, that compensation will be granted under any of the heads (ii)(b), (iii), (v) and (vi) relating to loss of future earnings on account of permanent disability, future medical expenses, loss of amenities (and/or loss of prospects of marriage) and loss of expectation of life.? In Sri Ramachandrappa v. The Manager, Royal Sundaram Alliance Insurance company Limited (2011) 13 SCC 236 , this Court observed as under: ?The compensation is usually based upon the loss of the claimants earnings or earning capacity, or upon the loss of particular faculties or members or use of such members, ordinarily in accordance with a definite schedule. The Courts have time and again observed that the compensation to be awarded is not measured by the nature, location or degree of the injury, but rather by the extent or degree of the incapacity resulting from the injury. The Tribunals are expected to make an award determining the amount of compensation which should appear to be just, fair and proper. The term ?disability?, as so used, ordinarily means loss or impairment of earning power and has been held not to mean loss of a member of the body. If the physical efficiency because of the injury has substantially impaired or if he is unable to perform the same work with the same ease as before he was injured or is unable to do heavy work which he was able to do previous to his injury, he will be entitled to suitable compensation. Disability benefits are ordinarily graded on the basis of the character of the disability as partial or total, and as temporary or permanent. No definite rule can be established as to what constitutes partial incapacity in cases not covered by a schedule or fixed liabilities, since facts will differ in practically every case.? In light of the principles laid down in the aforementioned cases, it is suffice to say that in determining the quantum of compensation payable to the victims of accident, who are disabled either permanently or temporarily, efforts should always be made to award adequate compensation not only for the physical injury and treatment, but also for the loss of earning and inability to lead a normal life and enjoy amenities, which would have been enjoyed but for the disability caused due to the accident. The amount awarded under the head of loss of earning capacity are distinct and do not overlap with the amount awarded for pain, suffering and loss of enjoyment of life or the amount awarded for medical expenses.The most serious error committed by the Tribunal and the High Court is that neither of them awarded compensation to the appellant for future medical treatment. The compensation awarded by the Tribunal for nourishing food, pain and suffering, loss of income during the period of treatment and thereafter and loss of amenities of life including marital prospect and expectation of life was also wholly inadequate. By reducing amount under various heads the High Court virtually rubbed salt in the wound of the appellant.In our considered view, the High Court was not at all justified in declaring that the disability suffered by the appellant was partial. While the appellant had proved the nature of injury and the extent of disability by examining the doctor, who opined that the appellant had suffered 40% permanent disability and further that he will have to undergo operations till his 30th year for removal of the bones. The learned Single Judge of the High Court, without assigning any reason, declared that the disability was partial. Therefore, that part of the impugned judgment is liable to be set aside.We are further of the view that the Tribunal and the High Court were bound to award adequate compensation in lieu of the expenses already incurred for treatment and also for ?future medical expenses? for next 9 years keeping in view the escalating cost of medical treatment. Having regard to the nature of injuries and the fact that the appellant will have to undergo 9 operations for removal of the downward growing bones, we deem it proper to award total compensation of Rs.4 lakhs under this head. For ?pain and suffering? for 9 years, the appellant deserves to be awarded compensation of Rs.3 lakhs. For ?loss of marital expectation?, the appellant deserves to be awarded compensation of Rs.3 lakhs. For ?loss of income, etc.,? the appellant deserves to be awarded a sum of Rs.1 lakh.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]In light of the principles laid down in the aforementioned cases, it is suffice to say that in determining the quantum of compensation payable to the victims of accident, who are disabled either permanently or temporarily, efforts should always be made to award adequate compensation not only for the physical injury and treatment, but also for the loss of earning and inability to lead a normal life and enjoy amenities, which would have been enjoyed but for the disability caused due to the accident. The amount awarded under the head of loss of earning capacity are distinct and do not overlap with the amount awarded for pain, suffering and loss of enjoyment of life or the amount awarded for medical expenses.The most serious error committed by the Tribunal and the High Court is that neither of them awarded compensation to the appellant for future medical treatment. The compensation awarded by the Tribunal for nourishing food, pain and suffering, loss of income during the period of treatment and thereafter and loss of amenities of life including marital prospect and expectation of life was also wholly inadequate. By reducing amount under various heads the High Court virtually rubbed salt in the wound of the appellant.In our considered view, the High Court was not at all justified in declaring that the disability suffered by the appellant was partial. While the appellant had proved the nature of injury and the extent of disability by examining the doctor, who opined that the appellant had suffered 40% permanent disability and further that he will have to undergo operations till his 30th year for removal of the bones. The learned Single Judge of the High Court, without assigning any reason, declared that the disability was partial. Therefore, that part of the impugned judgment is liable to be set aside.We are further of the view that the Tribunal and the High Court were bound to award adequate compensation in lieu of the expenses already incurred for treatment and also formedical expenses? for next 9 years keeping in view the escalating cost of medical treatment. Having regard to the nature of injuries and the fact that the appellant will have to undergo 9 operations for removal of the downward growing bones, we deem it proper to award total compensation of Rs.4 lakhs under this head.