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M. D. Jacob v. United India Insurance Ltd. & Another

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 5601-5602 of 2007)Decided 21 Jan 2014
Civil Appeal Nos. 5601-5602 of 2007
Chief Justice P. Sathasivam · Justice Ranjan Gogoi · Justice Shiva Kirti Singh

Background

An electrician suffered catastrophic injuries in a road accident, including loss of his left hand, and was assessed as completely disabled. The claims tribunal awarded ₹14.20 lakh using evidence of his work and monthly earning capacity of ₹5,000. The High Court reduced the award to ₹9.56 lakh by cutting income, disability and pain-and-suffering figures.

Decision Breakdown

The Supreme Court allowed the appeals and restored the tribunal's ₹14.20 lakh award. The tribunal had considered the employment evidence carefully, while the High Court gave no adequate reason to reduce monthly income to ₹3,000. Its continued allowance of ₹60,000 for one year's lost income was also inconsistent with that reduction. The insurer had to deposit the dues within eight weeks with 9% interest from the claim-petition date, and Jacob could withdraw them without conditions.

Lesson Learnt

Compensation for disabling injuries should be grounded in evidence of earnings and the actual harm suffered. An appeal court cannot fairly reduce supported figures without explaining why they are wrong.

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

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