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Lal Singh Marabi v. National Insurance Co. Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 3764 of 2017)Decided 15 Feb 2017
Civil Appeal No. 3764 of 2017
Chief Justice J.S. Khehar · Justice N.V. Ramana · Dr. Justice D.Y. Chandrachud

Background

In April 2004, Lal Singh Marabi, then 29 years old, was travelling in a mini-bus in Madhya Pradesh when it overturned, so severely injuring his left leg that it had to be amputated to save his life. He sought compensation of Rs.10,10,000 from the bus driver, owner, and insurer before the Motor Accident Claims Tribunal, claiming he worked as a driver earning Rs.4,000/month. The Tribunal and later the High Court both discounted his treating doctor's certified 90% permanent disability down to 60% and awarded him Rs.2,75,000 and Rs.3,57,800 respectively, while also holding the insurer not ultimately liable (though directed to pay first and recover from the driver/owner).

Decision Breakdown

The Supreme Court held that the lower courts erred in reducing the disability from the doctor-certified 90% to 60%, since the loss of a leg to amputation genuinely destroys his ability to work as a driver or daily-wage labourer regardless of how healthy the rest of his body otherwise is. Applying the 90% disability figure to the annual income of Rs.24,000 already fixed by the High Court, with a multiplier of 17, the Court recalculated the compensation for permanent disability and also raised the amount allowed for an artificial limb from Rs.60,000 to Rs.1,00,000. The total award was enhanced to Rs.5,20,200 plus 6% interest from the date the claim was filed, payable first by the insurer, which could then recover from the driver and owner.

Lesson Learnt

When a permanent disability like amputation is certified by a treating doctor, courts should generally not discount that figure based on the claimant's "overall" health: what matters is the practical destruction of the person's ability to earn a livelihood in their actual occupation.

Official source (sci.gov.in)View Judgment (PDF)

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