CMA/1593/2022 of UNITED INDIA INSURANCE COMPANY LTD Vs NATARAJ on 8 September 2026

Judgment

(Judgment of the Court was delivered by N.Mala J.)

The Insurance Company has filed the above appeal challenging the judgment and decree of the Claims Tribunal dated 27.07.2021, in MCOP.No.2314/2016.

The parties will be referred to as per their rank in the appeal.

Brief facts: The 1st respondent filed a claim petition claiming a sum of Rs.25 lakhs on account of the grievous injuries sustained by him in a motorcycle accident which took place, on 09.11.2016. The 1st respondent claimed that while, riding his motorcycle bearing Registration No.TN-42- C-8587, on Dharapuram-Tirupur road, he was hit by a lorry bearing Registration No.TN-52-W-3523, which was driven by its driver in a rash and negligent manner, and that in the impact of the collision, he sustained grievous injuries. According to the 1st respondent, he was aged about 28 years at the time of the accident and was doing garment business and farming. The 1st respondent claimed that due to the injuries suffered by him in the accident, he was not able to work as before and therefore, he was constrained to file the claim petition claiming compensation of Rs.25,00,000/- against the owner and the insurer of the lorry.

The owner of the lorry, the 2nd respondent herein, remained exparte before the Claims Tribunal. The claim petition was contested by the appellant. The appellant denied the manner of accident, negligence,

CMA No. 1593 of 2022 permanent disability of the 1st respondent and its liability to pay the compensation amount.

Before the Claims Tribunal, the 1st respondent examined himself as PW1 and also examined one Shanmuga Prabhu as PW2 and marked 11 documents. On the side of the appellant, no oral or documentary evidence was adduced.

The Claims Tribunal, on the issue of negligence, on an assessment of the entire evidence on record, held that the negligence of the lorry driver insured with the appellant, resulted in the accident. The Claims Tribunal found that there was a valid subsisting Policy and therefore, held that the appellant was liable to satisfy the compensation granted. On the quantum of compensation, the Claims Tribunal, on the basis of the Permanent Disability Certificate [Ex.C1] issued by the Medical Board, fixed the permanent disability at 60%. The Claims Tribunal, in the absence of any evidence in support of the income of the injured, fixed the notional income at Rs.11,000/- per month and after following the established legal principles, awarded total compensation of Rs.24,26,722/- along with interest at 7.5% per annum.

The learned counsel for the appellant submitted that the Claims Tribunal ought not to have mechanically adopted the multiplier method towards loss of earning capacity. The learned counsel submitted that the Claims Tribunal erred in awarding Rs.18,84,960/- towards loss of earning

CMA No. 1593 of 2022 capacity. The learned counsel further submitted that the Tribunal erred in fixing the percentage of permanent disability at 60% overlooking the fact that the assessment of permanent disability by the Medical Board was only physical and not functional. The learned counsel therefore submitted that the Award of the Claims Tribunal deserves to be interfered with.

We have heard both sides and also perused the materials available on record.

We have gone through the Permanent Disability Certificate [Ex.C1] issued by the Medical Board We find that the assessment of partial permanent disability at 60% by the Medical Board is based on physical examination alone. The Certificate records that the 1st respondent suffered crush injury on the right leg and foot with degloving injury, skin and soft tissue loss extending from the knee to MD foot with open fracture of the fibula with undisplaced fracture of the calcaneum. The Disability Certificate also records the procedure undergone by the 1st respondent, for treatment of the aforesaid injuries. We find, that the Claims Tribunal has mechanically adopted the partial permanent disability assessed by the Medical Board at 60% without considering the functional disability. On consideration of the Disability Certificate of the Medical Board and the nature of injuries sustained by the 1st respondent, we are of the view that the functional disability can be fixed at 25%.

CMA No. 1593 of 2022 Thus, the amount for Disability is calculated as follows:- Notional income fixed by the Tribunal - Rs.11,000/- [Add] 40% towards future prospects - Rs. 4,400/-

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Rs.15,400/- Applying multiplier 17, the total income is [15,400 x 12 x 17] - Rs.31,41,600/- 25% towards permanent disability - Rs. 7,85,400/-

We also find that the compensation awarded towards other conventional heads are just, fair and reasonable and calls for no interference.

Accordingly, the compensation awarded by the Claims Tribunal is modified as follows:- Sl.No. Heads Amount Awarded by the Tribunal in Rs. Amount Awarded by this Court in Rs.

Disability 18,84,960/- 7,85,400/-

Medical Bills 3,96,762/- 3,96,762/-

Pain and suffering 50,000/- 50,000/-

Nutrition Expenses 25,000/- 25,000/-

Transportation Charges 20,000/- 20,000/-

Attender Charges 50,000/- 50,000/- Total 24,26,722/- 13,27,162/-

CMA No. 1593 of 2022

The appellant is directed to deposit the modified Award amount of Rs.13,27,162/- [Rupees Thirteen Lakhs Twenty Seven Thousand One Hundred Sixty Two only], along with interest at 7.5% per annum, from the date of petition till the date of deposit, within a period of twelve weeks from the date of receipt of a copy of the web copy of the order, if not already deposited. On such deposit being made, the 1st respondent shall be entitled to withdraw the amount along with the proportionate accrued interest, by filing appropriate application before the Claims Tribunal.

In the result, the Civil Miscellaneous Appeal is partly allowed and the judgment and decree of the Claims Tribunal, dated 27.07.2021, made in MCOP.No.2314/2016, is modified as above. No costs. Consequently, the connected miscellaneous petition is closed. (P.T.A.,J.) (N.M.,J.) 08-09-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No AP To

1. Motor Accidents Claims Tribunal (Special District Court), Tirupur.

2. The Section Officer, VR Section, High Court, Chennai.

CMA No. 1593 of 2022 P.T.ASHA J. AND N.MALA J. AP CMA No. 1593 of 2022 AND CMP NO. 11811 OF 2022 08-09-2026