SARNAM SINGH … Appellant(s)
Versus
SHRIRAM GENERAL INSURANCE
CO. LTD. & ORS. … Respondent(s)
CIVIL APPEAL NO.3900 OF 2023
This judgment pertains to a case where the appellant was involved in a road accident that resulted in the amputation of his right lower limb. The Motor Accident Claims Tribunal awarded him compensation of ₹34,29,800. However, the insurance company appealed the decision, and the High Court reduced the compensation to ₹28,43,000. The appellant appealed to the Supreme Court, arguing that his loss of earning capacity should be assessed at 100% due to the amputation.
The Supreme Court considered the appellant's permanent disability certificate, which indicated an 85% disability and stated that the condition was unlikely to improve. The court referred to a previous judgment and emphasized that the impact of a physical disability on earning capacity should be evaluated based on the nature of the individual's work. In this case, the appellant worked as a gunman and was unable to continue his duties due to the amputation. Therefore, the court concluded that his loss of earning capacity should be assessed at 100%.
The court also noted an error in the High Court's calculation of the compensation amount, as the original award by the Tribunal was ₹34,29,800, not ₹33,34,800 as stated by the High Court. Consequently, the Supreme Court allowed the appeal, set aside the High Court's order, and restored the Tribunal's award of ₹34,29,800 as compensation. No costs were awarded in this case.
4 July 2023
v There is a reference to the judgment of Mohan Soni vs. Ram Avtar Tomar and Others, which is cited as (2012) 2 SCC 267. In that case, the injured person, Mohan Soni, worked as a cart puller and had his left leg amputated due to an accident. The issue in that case was the assessment of compensation for the loss of earning capacity caused by the disability.
In Mohan Soni's case, the Tribunal had assessed the compensation considering the loss of earning at 50%, suggesting that the injured person could still perform some other work while sitting. However, the Supreme Court found that the Tribunal's assessment was erroneous, considering the age of the injured person (55 years) and the difficulty he would face in finding employment at that stage. The Court acknowledged that the impact of a physical disability resulting from an accident varies depending on the nature of the work performed by the person.
The Supreme Court, in Mohan Soni's case, enhanced the loss of earning capacity from 50% to 90% based on the specific circumstances and nature of the injured person's work as a cart puller. This judgment serves as a precedent for assessing the loss of earning capacity in cases involving physical disabilities caused by accidents.