Summary
The Court enhanced compensation for a young accident victim whose certified 69% permanent disability had entirely destroyed his earning capacity. Economic loss required assessment of actual functional consequences rather than mechanical adoption of the medical percentage. The award also had to account realistically for attendant care, recurring treatment and lost earnings during hospitalisation. The four revised heads totalled Rs.27,67,800, payable within six weeks after adjustment of amounts already paid under those heads.
Issues
- Whether the certified physical-disability percentage adequately measured the claimant’s loss of earning capacity.
- Whether attendant expenses, future treatment and earnings lost during hospitalisation required enhancement.
Held
- The effect of permanent disability on earning capacity depended on the claimant’s actual abilities, occupation, age and scope for earning through other work. The medical percentage could not mechanically determine the percentage of economic loss. Here severe cognitive impairment and restricted mobility produced complete loss of earning capacity. (¶¶ 12, 13, 14, 15, 16)
- Using monthly income of Rs.4,500, adding 40% future prospects and applying multiplier 18, the Court assessed compensation for total loss of earning capacity at Rs.13,60,800. (¶ 16)
- The claimant’s need for full-time assistance could not be met in the award merely by assuming gratuitous family support. In the absence of precise expenditure evidence, attendant costs were estimated conservatively at Rs.5,000 monthly and quantified using multiplier 18 at Rs.10,80,000. (¶ 8)
- Documented recurring treatment justified increasing future medical expenses to Rs.3,00,000. Six months’ lost earnings were corrected to Rs.27,000, consistent with the accepted monthly income. (¶¶ 9, 17)
- The operative total of Rs.27,67,800 covered the four revised heads, with adjustment of sums previously paid under those heads. Just compensation required realistic attention to the claimant’s needs and dignity, while remaining proportionate. (¶¶ 18, 19, 20)
Result
Appeal allowed and High Court award modified. Insurer directed to pay the quantified Rs.27,67,800 under the four revised heads within six weeks, adjusting prior payments under those heads. Parties to bear their respective costs.