Ker HC | [Motor Accidents Compensation Act] Court grants enhancement in compensation with an additional interest of 9% considering permanent disability; Revision Petition allowed

Kerala High Court

Kerala High Court: N. Nagaresh, J., while allowing the present revision petition, made additional compensation citing settled precedents.


Respondent 3 (insurer) filed the present review petition seeking to review the judgment dated 08-09-2020 in the Motor Accidents Compensation Act (MACA), 1999. The respondent was the petitioner in Original Petition (MV) No 684 of 2013 on the files of the Motor Accidents Claims Tribunal, Pala. The respondent suffered serious injuries in a motor accident occurred on 06-02-2013. Tribunal awarded Rs 989350 under various heads as compensation. Dissatisfied with the quantum of compensation, respondent filed MACA No 2202 of 2016. In the MACA, this Court granted additional compensation of Rs 2018823. The limited ground on which this Revision Petition is preferred relates to grant of 50% enhancement towards future prospects for arriving at the notional income of the respondent.


Court placed reliance on the case of National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, wherein it was held that 40% of established income should be added towards future prospects in case the deceased was below 40 years. In Magma General Insurance Co. Ltd. v. Nanu Ram, (2018) 18 SCC 130, the Supreme Court reduced the percentage of future prospects from 50% to 40%. With respect to the present facts and circumstances, Court said, “In the absence of any proof that the respondent belonged to a salaried employment and the respondent being below the age of 40 years, he was entitled to count only 40% of his monthly income towards future prospects, in the light of the judgments of the Apex Court. Therefore, the notional monthly income of the respondent should have been taken as Rs 12600. But, this Court took Rs 13500 as the notional monthly income inclusive of future prospects, which obviously is an error. Therefore, the judgment in the MACA is liable to be reviewed.”

Accordingly, the compensation for permanent disability of the respondent is fixed at Rs 1814400. As the respondent had already been awarded Rs 345600 by the Tribunal, the entitlement towards additional compensation for permanent disability, amounts at Rs 1468800


Pursuant to above observations, Court awarded interest at the rate of 9% per annum for the additional compensation towards permanent disability and disfigurement.[Manager, New India Assurance Co. Ltd. v. Biju, 2021 SCC OnLine Ker 151, decided on 04-01-2021]

Sakshi Shukla, Editorial Assistant has put this story together

Join the discussion

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.