Court Enhances Compensation in Motor Accident Injury Case Involving Tanker Lorry Accident

The Supreme Court of India delivered a significant judgment on November 18, 2022, regarding a motor accident case that involved the appellant, T.J. Parameshwarappa, who was severely injured in a collision while traveling in a tanker lorry. The case revolves around the compensation awarded for the permanent disabilities and financial loss sustained by the appellant after a major road accident.

The case began with the appellant’s claim for compensation due to injuries sustained in an accident on May 15, 2015, near the RTO Office in Chitradurga, Karnataka. While traveling in the tanker lorry, the driver of the vehicle drove recklessly, which resulted in the vehicle colliding with another lorry. The appellant suffered a comminuted fracture of the tibia bones in both legs, requiring extensive medical treatment and surgeries, followed by long-term rehabilitation.

The appellant filed a claim seeking compensation for the injuries, arguing that the permanent disability caused by the accident made it impossible for him to continue his work as a cleaner for the tanker lorry, resulting in both physical and financial loss. The original Motor Accidents Claims Tribunal (MACT) awarded a sum of Rs. 21,08,400, but this amount was later reduced by the Karnataka High Court to Rs. 7,37,604, which prompted the appellant to file an appeal to the Supreme Court for a reassessment of the compensation.

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In its review, the Supreme Court found that the lower court had made significant errors in the calculation of the permanent disability percentage and the assessment of the appellant’s earning capacity. The appellant’s doctor had assessed a permanent disability of 54%, but the High Court had only considered 20%, resulting in a substantial reduction of compensation. The Court also noted that the appellant’s monthly income had been underestimated by the High Court, leading to a lower-than-expected compensation for loss of earnings.

In a detailed judgment, the Supreme Court reassessed the compensation and decided to enhance it, taking into account the medical evidence, the appellant’s permanent disability, and the impact on his future earnings. The Court awarded a total compensation of Rs. 11,67,405, a significant increase from the High Court’s award. The enhanced compensation includes amounts for pain and suffering, medical expenses, loss of income during the laid-up period, and loss of future amenities. It also carries interest at the rate of 6% per annum from the date of filing of the claim petition until its realization.

The judgment also emphasized the proper approach to assessing permanent disability and the resulting loss of earnings. It clarified that the percentage of permanent disability should not always be directly equated with the loss of earning capacity, and that the Tribunal should consider the nature of the injury, the claimant’s age, profession, and the extent to which the injury impairs their ability to work. The Court noted that in some cases, the permanent disability may have a much higher impact on earning capacity than the percentage of disability itself.

The Supreme Court’s decision reinforces the importance of fair and just compensation in personal injury cases, particularly in motor accident claims. By reassessing the compensation and ensuring that it fully addressed the appellant’s physical, financial, and emotional suffering, the Court highlighted the need for compensation that truly reflects the loss sustained by the claimant.

Read also: https://judgmentlibrary.com/motor-accident-compensation-legal-insights-on-future-prospects-and-conventional-heads/

The judgment was delivered by a bench consisting of Justices B.R. Gavai and B.V. Nagarathna. The appeals were allowed in part, with the enhanced compensation to be deposited within six weeks, as outlined in the Court’s order.

Petitioner Name: T.J. Parameshwarappa.
Respondent Name: The Branch Manager, New India Assurance Co. Ltd. & Ors..
Judgment By: Justice B.R. Gavai, Justice B.V. Nagarathna.
Place Of Incident: Chitradurga, Karnataka.
Judgment Date: 17-11-2022.

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