Summary
The claimant, a merchant navy employee in Belgium earning USD 1,000 a month, lost his right forearm below the elbow in a 1997 road accident and underwent five operations during prolonged hospitalisation. The Tribunal awarded Rs. 6.68 lakh. The High Court enhanced the award to Rs. 14.82 lakh but assessed loss of income at only half of Rs. 36,000 a month, assuming merchant navy work lasts six months a year and that he could still earn something. It gave Rs. 25,000 for pain and suffering. The Supreme Court held that the six-month assumption had no evidential basis and that the claimant could no longer work in the merchant navy at all. The High Court had also ignored future rise in income. Loss of income was reassessed at Rs. 30,000 a month, giving Rs. 57.6 lakh with a multiplier of 16, and pain and suffering at Rs. 4 lakh. Total compensation was raised to Rs. 62.35 lakh with 7.5% interest.
Issues
- Whether the High Court rightly assessed future loss of earning capacity at 50% of the claimant's merchant navy income on the assumption of six months' work a year
- Whether Rs. 25,000 for pain, shock and suffering was adequate for an amputation requiring five operations
Held
- The finding that merchant navy work usually lasts only six months a year was wholly without basis, as no evidence was led on it, and it cannot be assumed the claimant would earn nothing for the rest of the year. With his right hand amputated below the elbow, he can no longer work in the merchant navy. The High Court also failed to consider future rise in income. Loss of income should have been taken at least at Rs. 30,000 a month, giving Rs. 57.6 lakh (30,000 × 12 × 16). (¶ 5)
- Given the amputation, five operations, prolonged hospitalisation and transfers between hospitals, Rs. 25,000 for pain, shock and suffering was on the lower side. The claimant was entitled to at least Rs. 4 lakh under that head. (¶ 5.1)
Result
Appeal partly allowed. Compensation was enhanced to a total of Rs. 62.35 lakh with 7.5% annual interest from the date of the claim petition, the enhanced amount to be deposited within eight weeks; no costs.