High Court of KeralaSingle JudgeMACA disposed of as above. All pending interloc...

Murali, S/o Narayanan v. T.R. BijU, Santhosh & M/S New India Assurance Co. Ltd.

Case / Petition Number:M.A.C.A.No.507/2015

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • K. Harilal
Judgment Date
2018-04-04
Court Decision / Holding
The High Court allowed the appeal in part, adopting a higher monthly notional income of Rs 5,000 and recalculating compensation: Rs 30,000 for loss of earnings, Rs 4,05,000 for permanent disability with Rs 1,21,500 as additional, Rs 60,000 for pain and sufferings with Rs 10,000 as additional, and Rs 50,000 for loss of amenities with Rs 10,000 as additional. Total compensation fixed at Rs 7,86,733, with interest. The insurer is directed to deposit the total amount within three months, and to recover the same from respondents 1 and 2. MACA disposed of as above; all pending interlocutory applications stand closed.
Final Disposition
MACA disposed of as above. All pending interlocutory applications are closed. The insurer is directed to deposit the total compensation with interest within three months, with the right to recover the amount from respondents 1 and 2.

Parties to the Case

Appellants / Petitioners

  • Murali, S/o Narayanan

Respondents

  • T.R. BijU
  • Santhosh
  • M/S New India Assurance Co. Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.L.Ram Mohan
  • • Sri.M.Aubrey Abraham Isaac

Counsels for Respondents

  • • Sri.P.Jacob Mathew
  • • Sri.A.A.ZIYAD Rahman

Case Synopsis & Summary

Murali, S/o Narayanan, the appellant in MACA 507/2015, challenged the award of Rs 6,36,233 granted by the Motor Accidents Claims Tribunal, Perumbavoor, in OP(MV) 1071/2009 for bodily injuries suffered in a road traffic accident in 2009. The third respondent insurer admitted policy coverage but disputed quantum and liability, arguing that the second respondent-driver lacked a valid driving licence. The Tribunal held the insurer liable to indemnify respondents 1 and 2 and permitted recovery from them jointly and severally. On appeal, the appellant contended that compensation under heads such as loss of dependency, pain and sufferings, and loss of amenities was inadequately awarded and that the fixed monthly income was too low for a professional driver. The appellant’s counsel urged reconsideration of income using the notional-income principle. The High Court noted that the accident occurred in 2009 and, applying the notional-income doctrine from Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd. (2011) 13 SCC 236, held that Rs 3,500 was too low for a notional income, approving Rs 5,000 per month as the claimant’s monthly earnings. Consequently, enhancement was directed: loss of earnings Rs 30,000; permanent disability Rs 4,05,000 with an additional Rs 1,21,500; pain and suffering Rs 60,000 (plus Rs 10,000); loss of amenities Rs 50,000 (plus Rs 10,000). The total became Rs 7,86,733, with interest, and the insurer was ordered to deposit within three months, while recovering the amount from respondents. MACA disposed of accordingly, with interlocutory applications closed.

Provisions of Law Cited

Section 166 of the Motor Vehicles Act, 1988

Legal Doctrines & Maxims

  • Notional income rule in personal injury cases (absence of exact income evidence)
  • Utilization of notional income principle to enhance compensation given lapse since 2004 (Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd., 2011 (13) SCC 236)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the compensation awarded by the Tribunal under heads such as loss of dependency, pain and sufferings, and loss of amenities is too low. He asserts that the petitioner's income as a driver was Rs 5,000 per month at the time of the accident and that the Tribunal’s fixation of Rs 3,500 lacks sufficient evidence. Relying on the notional income principle, particularly in light of the time elapsed since 2004, he argues for a higher monthly notional income (Rs 5,000) to compute enhanced compensation for loss of earnings, disability, and related heads; cites the long treatment period and multiple surgeries as proving grievous injuries requiring higher compensation.

Contentions of Respondents

The insurer defends the Tribunal’s findings by contesting both quantum and liability. It admits policy coverage but maintains that the second respondent-driver’s lack of a valid licence undermines liability; nonetheless, the insurer contends that evidence of exact earnings is lacking and risk of excessive liability should be evaluated with caution. The respondents pressed that the notional income claim should be grounded in reliable evidence, and that the award should reflect standard statutory guidelines and the insured’s responsibility to recover amounts where appropriate.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ramachandrappa v. Manager, Royal Sundaram Alliance Insurance Co. Ltd.2011 (13) SCC 236PositiveThe court applied the principle from Ramachandrappa that notional income may be increased when exact earnings are not proved and considering the lapse since 2004 to justify Rs 5,000 per month as the notional income.

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM THE HONOURABLE MR.JUSTICE K.HARILAL WEDNESDAY, THE 4TH DAY OF APRIL 2018 / 14TH CHAITHRA, 1940 AGAINST THE AWARD DATED 30-07-2014 IN OP(MV) 1071/2009 of M.A.C.T.,PERUMBAVOOR APPELLANT/PETITIONER: --------------------- MURALI, S/O.NARAYANAN, RESIDING AT ELAVUMKUDY HOUSE, VALAMPOOR KARA, MAZHUVANNOOR VILLAGE, KUNNATHUNADU TALUK. BY ADVS.SRI.L.RAM MOHAN SRI.M.AUBREY ABRAHAM ISAAC RESPONDENTS/RESPONDENTS: ----------------------- 1. T.R.BIJU, S/O.BALAKRISHNAN, THOZHUTHINKAL HOUSE, VILANGU P.O., PIN-683561. 2. SANTHOSH, S/O.SUBRAMANYAN, KAVANATTU HOUSE, VILANGU, KIZHAKKAMBALAM-683562. 3. M/S.NEW INDIA ASSURANCE CO. LTD. OPPOSITE NEW STAND, TRIPUNITHURA-682301. R3 BY ADV. SRI.P.JACOB MATHEW BY SRI.A.A.ZIYAD RAHMAN THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 04-04-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## **K.Harilal, J.** ==================================== M.A.C.A.No.507/2015 ==================================== Dated this the 4[th] day of April, 2018. ## **JUDGMENT** 1.The appellant is the petitioner in O.P.M.V. No.1071/2009 of the Motor Accidents Claims Tribunal, Perumbavoor. The aforesaid application was filed under Section 166 of the Motor Vehicle Act, claiming compensation for the bodily injury suffered by him in a road traffic accident. He claimed an amount of Rs.8,00,000/- as compensation. The third respondent insurance company resisted the said claim, disputing the quantum of compensation claimed under various heads and the liability to indemnify the respondents 1 and 2, but Maca507/2015 -:2:- admitted the coverage of the policy. The insurance company contended that the second respondent, who had driven the offending vehicle at the time of accident had no driving licence. The Tribunal accepted the said contention and the third respondent insurance company was permitted to recover the amount from first and second respondents, jointly and severally. After considering the evidence on record, the Tribunal passed the impugned award, granting Rs.6,36,233/- as compensation to the petitioner. - 2.This appeal has been filed challenging the quantum of compensation granted under the heads, loss of dependency, pain and sufferings and loss of amenities. It is also contended that the monthly income fixed by the Tribunal Maca507/2015 ## -:3:- is very low, particularly when the petitioner was a driver by profession at the time of accident. 3.According to the appellant/petitioner, he is a driver by profession and he was getting Rs.5,000/- per month, as income from his profession. But, no document has been produced to prove the said contention. So, the Tribunal has taken Rs.3,500/- as the monthly income. In _**Ramachandrappra v. Manager, Royal Sundaram Alliance Insurance Co.Ltd.**_ **[2011 (13) SCC 236]** , the Supreme Court held that in the case of an accident occurred in the year 2004, Rs.3,500/to Rs.4,500/- can be taken as the monthly notional income, in the absence of sufficient evidence to prove the exact income of the claimant or the victim, as the case may be. In Maca507/2015 -:4:- the instant case, the accident had occurred in the year 2009. Considering the long lapse of time after 2004, this Court is of the view that Rs.3,500/- is too low and therefore his claim of Rs.5,000/- is accepted as his monthly notional income. So, the petitioner is given Rs.30,000/- towards loss of earnings. Thus, the additional compensation granted under the said head is Rs.9,000/-. The petitioner is given Rs.4,05,000/- (5,000 x 12 x 15 x 45/100), as compensation towards loss of permanent disability. The additional compensation payable under this head is Rs.1,21,500/(4,05,000 - 2,83,500). 4.It has come out in evidence that he had undergone treatment as an inpatient for 108 days in three different hospitals and he had Maca507/2015 ## -:5:- undergone six surgeries. Ext.A7 wound certificate, coupled with Ext.A8 discharge summary, would give rise to an inference, beyond doubt that he had sustained grievous injuries and suffered pain for more than three months. Having regard to the long duration of the period under which he had suffered pain, the compensation for pain and sufferings would stand enhanced to Rs.60,000/-. The additional compensation payable under this head is Rs.10,000/-. - 5.Ext.X1 disability certificate shows that he has - 45% permanent disability. In view of the degree of disability shown in Ext.X1, the compensation for loss of amenities would stand enhanced to Rs.50,000/-. The additional compensation payable under this head is Maca507/2015 ## -:6:- Rs.10,000/-. 6.Thus, the petitioner is given a total additional compensation of Rs.1,50,000/[1,21,500 + 9,000 + 10,000 + 10,000]. The total compensation payable to the petitioner is Rs.7,86,733/- [6,36,233 + 1,50,000]. It is needless to say, the additional compensation also would carry interest as stipulated by the Tribunal. All other findings of the Tribunal would stand undisturbed and operative. The third respondent insurance company is directed to deposit the total compensation with interest, within a period of three months from the date of receipt of a copy of this judgment and the petitioner is allowed to withdraw the entire compensation with interest, after paying the court fee. Needless to say, the third Maca507/2015 ## -:7:- respondent insurance company is entitled to recover the said amount from respondents 1 and 2. - 7.The MACA is disposed of as above. All the pending interlocutory applications will stand closed. Sd/- **K.Harilal, Judge** sl. //True copy// P.S. To Judge