Sanjay Kumar v. Ashok Kumar and another
Background
An embroiderer lost his right leg above the knee in a road accident, substantially reducing his ability to earn a living. The Tribunal awarded approximately Rs. 4.83 lakh and the High Court increased this to approximately Rs. 6.36 lakh. He appealed because the assessment undervalued his skilled work and the lasting effects of the amputation.
Decision Breakdown
The Supreme Court increased compensation to Rs. 14,59,100 with 9% interest from the date of the accident. It accepted monthly earnings of Rs. 4,500 rather than treating the claimant as an unskilled worker, and calculated future earnings loss using a 50% increase, multiplier of 18 and 70% loss of earning capacity. It also allowed separate amounts for treatment-period earnings loss, medical and related needs, reduced marriage prospects, pain, lost amenities and litigation costs. Half the award was to be deposited for three years, with release subject to the Tribunal's approval, and half paid directly to the claimant.
Lesson Learnt
Compensation for a disabling injury should reflect the person's actual occupation and future earning difficulties. It can also cover lasting effects on ordinary life and future care, rather than being confined to immediate medical bills.