Landmark Judgment on Compensation Calculation in Personal Injury Cases

In a recent landmark judgment, the court delved into the intricacies of calculating compensation in personal injury cases. The detailed legal analysis provided crucial insights into factors like future economic loss, permanent disability assessment, and pain and suffering. This case sets a valuable precedent for similar future cases, highlighting the importance of meticulous computation in determining fair compensation for victims of accidents.

Facts

  • The learned Tribunal awarded Rs. 50,000/- towards pain and suffering.
  • The High Court did not enhance the amount of compensation under other heads.
  • The High Court assessed the permanent disability at 100% for working out the compensation.
  • The High Court enhanced the amount of compensation for future economic loss considering the income of the injured-claimant at Rs. 3,000/- per month.
  • The appellant is dissatisfied with the High Court’s decision and has filed the present appeal.
  • The appellant sustained multiple severe injuries in a vehicular accident
  • The injuries included head injury, brain stem injury, fractures in multiple bones, lacerations, burns, and pneumothorax
  • The appellant was assessed to have 68% permanent disability, although the High Court assessed it as 100%
  • Compensation awarded for loss of amenities was Rs. 25,000/-
  • Compensation for permanent disability was initially Rs. 2,00,000/- but was later increased to Rs. 2,44,800/-
  • The claimant filed a claim petition before the learned Tribunal seeking compensation

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Analysis

  • Appellant sustained serious injuries and trauma in a vehicular accident.
  • An award of Rs. 4,00,000/- is justified for pain, shock, and suffering.
  • High Court’s assessment of future economic loss at Rs. 3,000/- per month for a Mason is erroneous.
  • Claimant entitled to economic loss, past and future, based on a monthly income of Rs. 5,000/- considering minimum wages and future income rise.

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Decision

  • The present appeal is allowed and the impugned judgment by the High Court is modified.
  • The claimant, aged 40 years, is entitled to compensation.
  • Multiplier of 15 is applied to determine compensation.
  • The claimant is awarded Rs. 24,000 for loss of earing, Rs. 9,00,000 for future economic loss, and Rs. 4,00,000 for pain, shock, and suffering.
  • Total compensation awarded is Rs. 15,42,800 with 7.5% interest per annum from the date of the claim petition.
  • Insurance Company directed to pay the enhanced compensation amount within eight weeks.

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Case Title: VELAYUDHAN Vs. NATIONAL INSURANCE COMPANY CO. LTD. (2022 INSC 938)

Case Number: C.A. No.-006164-006164 / 2022

Click here to read/download original judgement

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