ASRAF ALLI versus M/S. NAVEEN HOTELS LTD. & ANR.

ASRAF ALLI versus M/S. NAVEEN HOTELS LTD. & ANR.

The correct calculation of compensation for permanent disability in a minor claimant under Motor Vehicles Act, 1988 requires use of actual income determined by evidence, a statutory multiplier of 15 (for age 15), and the percentage of loss of earning capacity (60% for amputation below middle thigh as per Workmen's Compensation Act, 1923, Schedule I, Item 19).

Parties
Appellant/claimant: Asraf Alli; Respondent No.1: Mis. Naveen Hotels Ltd.; Respondent No.2: Insurance Company (Respondent No.2, unnamed)
Jurisdiction
India
Judgment Date
19 December 2008
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
Appeal partly allowed
Legal Topics
Permanent Disability, Loss of Earning Capacity, Multiplier Method, Assessment of Income
Motor Accident Compensation Permanent Disability Loss of Earning Capacity Multiplier Method Assessment of Income

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Parties

Asraf Alli

Appellant/claimant

Mis. Naveen Hotels Ltd.

Respondent No.1

Insurance Company (Respondent No.2, unnamed)

Respondent No.2

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 What is the correct method to assess compensation for permanent disability of a minor under the Motor Vehicles Act, 1988?
  2. 2 Should actual or notional income be considered for loss of earning capacity?
  3. 3 What is the proper multiplier and percentage of disability for compensation calculation?

Ratio Decidendi

The correct calculation of compensation for permanent disability in a minor claimant under Motor Vehicles Act, 1988 requires use of actual income determined by evidence, a statutory multiplier of 15 (for age 15), and the percentage of loss of earning capacity (60% for amputation below middle thigh as per Workmen's Compensation Act, 1923, Schedule I, Item 19).

Court Disposition

Appeal partly allowed

Orders

  • Compensation for loss of future earning capacity fixed at Rs.3,24,000/- based on annual actual income of Rs.21,600/-, multiplier 15, and 60% disability; no order as to costs