VidhiSangh

Supreme Court of India · 07/09/2022

VELAYUDHAN versus NATIONAL INSURANCE CO. LTD. & ANR.

[2022] 7 S.C.R. 222 · 2022 INSC 938

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Summary

A 40-year-old mason suffered severe injuries in a road accident requiring prolonged hospitalisation. The Tribunal awarded compensation taking his income at Rs. 2,000 a month and Rs. 50,000 for pain and suffering. The Kerala High Court treated his disability as 100% for computation and enhanced the total to Rs. 8,24,800, but only by raising notional income to Rs. 3,000 a month. The Supreme Court held Rs. 50,000 for pain and suffering too low given the serious injuries and trauma, and raised it to Rs. 4 lakh. It reassessed income at Rs. 5,000 a month, considering minimum wages for a mason and future rise, with a multiplier of 15. Future economic loss thus became Rs. 9 lakh. The total was enhanced to Rs. 15,42,800 with 7.5% interest from the date of the claim petition.

Issues

  1. Whether the compensation for pain and suffering and for future economic loss awarded to a seriously injured claimant with 100% functional disability was inadequate

Held

Result

Appeal partly allowed. The award was modified to Rs. 24,000 for loss of earnings, Rs. 9 lakh for future economic loss and Rs. 4 lakh for pain, shock and suffering, a total of Rs. 15,42,800 with 7.5% annual interest from the claim petition; no costs.

Judgment PDF: Supreme Court of India, [2022] 7 S.C.R. 222.