Case: M.D.Jacob Vs. United India Insurance Ltd

2. The appellant was a victim of road accident on 27th July, 1997. On account of several serious injuries including amputation of complete left hand, severe injuries in head, dislocation of bones in hip and both knees and severe injuries in foot, the Doctor assessed his disability at 100%.3. The appellant preferred a claim petition before the Motor Accident Claims Tribunal at Chennai and sought compensation of Rs. 26,00,000 (Rupees twenty-six lacs). The Claims Tribunal allowed a claim for Rs. 14,20,000 (Rupees fourteen lacs and twenty thousand only)vide judgment dated 9.8.2000 rendered in M.C.O.P. No. 3365 of 1997. The claim allowed on different headsof income for one year as—Rs. 60,000(ii)Special diet and transportation—Rs. 50,000(iii)Medical expenses—Rs. 50,000(iv)Pain and suffering—Rs. 2,00,000(v)Permanent disability—Rs. 4,00,000(vi)Loss of future earning—Rs.The Insurance Company preferred appeal before the High Court Madras and by the order under appeal dated 13.11.2006 passed in C.M.A. Nos. 1963 of 2000 and 12 of 2001 the High Court, while maintaining the Award under the first three heads, reduced the amount of Rs. 2,00 000 for pain and suffering to Rs. 1,00,000, Rs. 4,00,000 for permanent disability to Rs. 3,00,000 and Rs. 6,60,000 as loss of future earning to Rs. 3,96,000. As a result of aforesaid reduction, appellant has been held entitled only to Rs. 9,56,000 (Rupees nine lacs and fifty six thousand only) in place of Rs. 14,20,000 (Rupees fourteen lacs and twenty thousands only).

Court's reasoning:
the Tribunal assessed the earning capacity of the appellant as Rs. 5,000 p.m. and accordingly allowed a sum of Rs. 60,000 as loss of earning capacity for a period of one year and by adopting the multiplier of 11 allowed Rs. 6,60,000 as loss of futuregood reasons treated the monthly income of the appellant to be Rs. 3,000 in place of Rs. 5,000. Inexplicably the High Court has retained loss of income for one year to Rs. 60,000 which is possible only if the monthly income is accepted to be Rs. 5,000. There is reason assigned even for reducing the compensation of Rs. 2,00,000 for pain and suffering to Rs. 1,00,000 and of Rs. 4,00,000 for permanent disability to Rs.learned Tribunal was quite justified in allowing Rs. 14,20,000 as total compensation on the basis of monthly income of Rs. 5,000