After Both-Femur Fractures, Madras HC Raises Manager’s Accident Compensation To Rs 8.34 Lakh, Assessing 20% Earning-Capacity Loss

In brief

The question

Whether the claimant’s injuries resulted in functional loss of earning capacity warranting compensation under the multiplier method.

The court held

The appeal was partly allowed.

It also directed

The award was enhanced from Rs.5,81,543 to Rs.8,34,543, with interest at 7.5% per annum from the date of the claim petition.

The insurer was directed to deposit the enhanced award, after crediting amounts already awarded and deposited, within eight weeks; the claimant was permitted to withdraw the amount with accrued interest and costs in accordance with law.

01Facts

The appellant, a passenger in an insured bus, sustained fractures to both femurs when the bus collided with a parked lorry on 5 July 2014.

¶ 2.1–2.5

She underwent surgery and claimed that her injuries forced her to resign from her employment as an HR Manager/Marketing Analyst.

¶ 2.1–2.5

The Motor Accident Claims Tribunal held the bus driver negligent and awarded Rs.5,81,543.

¶ 3.1–3.2

The claimant appealed, seeking enhancement, principally on account of loss of earning capacity and loss of amenities.

¶ 4.1–4.3

02Issues

i.Whether the claimant’s injuries resulted in functional loss of earning capacity warranting compensation under the multiplier method.

¶ 7.1–7.6

ii.Whether the claimant was entitled to additional compensation for loss of amenities, and whether compensation under both loss of earning capacity and permanent disability would constitute overlapping awards.

¶ 7.7–7.8

03Law Applied

Section 173 of the Motor Vehicles Act provides for an appeal against an award of the Claims Tribunal.

Under Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, physical disability is not to be mechanically equated with loss of earning capacity; functional disability must be assessed in light of the claimant’s particular occupation.

¶ 7.4

The Court also relied on K. Suresh v. New India Assurance Co. Ltd., (2012) 12 SCC 274, in rejecting the insurer’s contention that awards for loss of earning capacity and permanent disability necessarily overlap.

¶ 7.7

Provisions in the judgment · 1 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 173

04Reasoning

The medical evidence established fractures to both femurs and surgical treatment, while the claimant’s managerial work required her to sit, stand, move, and undertake workplace activities.

¶ 7.1, 7.3

However, she continued working for about three months after the accident and resigned only in 2016; the evidence did not establish that the accident compelled her resignation or caused total loss of earning capacity.

¶ 7.2–7.4

Applying Raj Kumar, the Court assessed functional loss at 20%, retained the monthly income of Rs.42,500, and calculated Rs.1,53,000 for loss of earning capacity using a multiplier of 18.

¶ 7.5–7.6

It also awarded Rs.1,00,000 for loss of amenities, while confirming the Tribunal’s other heads of compensation.

¶ 7.8