![]() Financial Daily from THE HINDU group of publications Sunday, Jan 01, 2006 |
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Investment World
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Courts/Legal Issues Money & Banking - General Insurance Columns - Law Lane A go-by to first principles!
BALU was riding a cycle when a Tata Sumo hit him. He sustained multiple fractures, and filed a claim petition for a compensation of Rs 11,36,000. The Motor Accidents Claims Tribunal (MACT), Chennai, awarded him Rs 9,19,000 as compensation to be paid by the car owner and the insurance company. The break-up was: Loss of earning capacity, Rs 3,00,000; compensation towards disability, Rs 1,25,000; loss of earning during convalescence, Rs 1,00,000; loss of earning of the escort, Rs 40,000; pain and suffering of the claimant, Rs 1,25,000; mental agony of the claimant, Rs 1,25,000; transport expenses, Rs 5,000; additional transport expenses, Rs 75,000; nutritious diet, Rs 20,000; medicines, Rs 3,000; and loss of bicycle, Rs 1,000. Justices M. Karpagavinayagam and S. R. Singharavelu heard the case, and studied the discharge and disability certificates. The court also listened to the Medical Officer, who had noted, `Acromion Clavicle Dislocation Open Reduction done, screw fixed,' and said that Balu's disability was to the extent of 50 per cent. The court need not always concur with the opinion of the Medical Officer, said the judges, after finding no evidence of `crushed injury on knee joint of both legs' as mentioned in the Tribunal's order. There was `absolutely no evidence' that Balu was in milk vending business, pointed out the court. Nor was there any basis for the monthly income of Rs 6,000, assumed by the Tribunal. Thus, the Rs 4 lakh awarded by MACT for loss of earning capacity was without `any process of calculation', said the court. Similarly, evidence was lacking on the parents' age, and the use of escort. "Again, there was an award of Rs 1,25,000 each under the head of mental agony as well as pain and suffering. The word `suffering' includes `agony'," pointed out the court. "To say that a person, who successfully underwent a surgery for the fractured right shoulder and who was having a prospective chance of complete healing due to his age, is expected to spend Rs 20,000 towards nutritious diet in future is also not acceptable," said the court. MACT's approach was not judicial, declared the judges, deprecating the order. "This is an unfortunate event of usurping the judicial powers in misusing the exchequer of the insurance company. The order of the Tribunal is the best model as to how not the process of estimation of the compensation could be made," the judges added. "All the norms hereinbefore observed by this court as well as the apex court were breached; and even the first principles of law and natural justice were given a go-by; and without even appreciating the evidence on record, on non-application of mind, the insurance company was directed to pay a sum of Rs 9,19,9000 as compensation towards the claimant for the injury sustained on his shoulder," is a snatch from the court's verdict dated December 8, 2005. The court, therefore, fixed the compensation at Rs 2 lakh with an interest at 7.5 per cent, `taking the totality of the circumstances.' H. G. Wells once said, "Every time I see an adult on a bicycle, I no longer despair for the future of the human race." Motorists normally share no such sentiments, for they often see cycles as dangerous contraptions on the road. Take care, therefore!
D. Murali
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