Accident victim’s compensation hiked to 30 lakhs

Justice Vimala who enhanced the compensation held that “The claims Tribunal/Court is duty bound to award just compensation which is reasonable based on evidence adduced. There is no ceiling limit for the Tribunal to award the compensation. The Claims Tribunal/Court is not bound by technical rules of evidence and when sections 168 and 169 of the Motor Vehicles Act, provide for summary procedure, it should be consistent with the rules of natural justice.”

As per the case, M. Premkumar (19), a 12th class student had sustained a right leg amputation in a road accident that took place on June 3, 2008. The Motor Accident Claims Tribunal in Bhavani, Erode District had awarded a compensation of Rs.3, 48,947 on holding that the disability was just 80 per cent. The order had prompted for an appeal at the High Court seeking enhancement of compensation. 

Justice Vimala on holding that he was a sports man and had received 70 certificates of meritorious performance, said “It would not have been difficult for the appellant to get a job in sports quota and he would have earned well. It is stated in the evidence that he wanted to become a Police Officer, but, his dream has been shattered into pieces, because of disablement in the accident.”

She also held that “the percentage of physical disablement need not necessarily reflect the percentage of functional disablement. The functional disablement would depend upon the nature of the job that the appellant is likely to have undertaken. Because of the disablement owing to amputation, even though he would not be able to take up any job, involving both the legs, he would be able to do any job involving upper limbs alone.” 

Holding that it is a fit case where, multiplier method can be adopted to assess the loss of earning capacity, the Judge on taking the modest estimate of monthly income at Rs. 8,000 and adding Rs. 4,000 towards future prospective increase in the income, evolved the loss of income at Rs.12,000 per month and accordingly enhanced the compensation to Rs.30 Lakh.