M.R. KRISHNA MURTHI versus THE NEW INDIA ASSURANCE CO. LTD. & OTHERS

Citation: [2019] 3 S.C.R. 1088 · Decided: 05-03-2019 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Disposed off

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Judgment (excerpt)

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1088                    SUPREME COURT REPORTS            [2019] 3 S.C.R.
M.R. KRISHNA MURTHI
v.
THE NEW INDIA ASSURANCE CO. LTD. & OTHERS
(Civil Appeal Nos. 2476-2477 of 2019)
MARCH 05, 2019
[A. K. SIKRI AND S. ABDUL NAZEER, JJ.]
Motor Vehicles Act, 1988:
Motor accident – Compensation – Assessment of –
Determination of loss of future earning – On facts, 18 year student
studying in school met with a motor accident leaving him 40%
disabled – Award of Rs. 8,48,000/- as compensation with 7% interest
for a period of 10 years – In appeal, the High Court awarded
additional lumpsum damages of Rs 50,000/- – In review petition,
the High Court enhanced the compensation by Rs. 24,000/- together
with corresponding interest – On appeal, held: Appellant because
of his family background-parents senior lawyers in the Supreme
Court, also wanted to join legal profession, even though at the time
of accident, he was studying in school – Having regard to affluent
family background, the appellant at the time of accident was
studying in prestigious School – Thus, the appellant had a bright
future and, his future earnings had to be considered keeping in
view the said factors – Though, not very seriously, the functional
capacity has been impaired because of the disability suffered by
the appellant as the appellant cannot run around like other young
advocates of his age – In view thereof, loss of future earning fixed
at Rs.5,000/- pm i.e. Rs.60,000/- pa on which multiplier of 18 is to
be applied – Loss future earning comes to Rs.10,80,000/- – Appellant
to be paid another sum of Rs.6,54,000/- under this head along with
interest as awarded by the court below
Motor accidents – Road accident victims – Reforms in
payment of compensation to victims – Mechanism to prevents delays
and other obstacles in awarding compensation to road accident
victims and/or kiths and kins of victims – Held: Issuance of direction
to the government to consider setting up of mediation authority for
speedy disposal of motor accident claims – Government to consider
[2019] 3 S.C.R. 1088
1088
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1089
the feasibility of enacting Mediation Act to take care of various
aspects of mediation and examine the feasibility of setting up Motor
Accident Mediation Authority by making necessary amendments in
the Motor Vehicles Act, along with other directions/recommendations
issued.
Disposing of the appeals, the Court
HELD:1.1 In those cases where the victim of the accident
is not an earning person but a student, while assessing the
compensation for loss of future earning, the focus of the
examination would be the career prospect and the likely earning
of such a person in future. Where the claimant is pursuing a
particular professional course, the poseer would be: what would
have been his income had he joined a service commensurating
with the said course. That can be the future earning. There may
be cases where the victim is not, at that stage, doing any such
course to get a particular job. He or she may be studying in a
school. In such a case, future career would depend upon multiple
factors like the family background, choice/interest of the
complainant to pursue a particular career, facilities available to
him/her for adopting such a career, the favourable surrounding
circumstances to see which would have enabled the claimant to
successfully pick up the said career etc. If the chosen field is
employment, then the future earning can be taken on the basis of
salary and allowances which are payable for such calling. In case,
career is a particular profession, the future earning would depend
on host of other factors on the basis of which chances to achieve
success in such a profession can be ascertained. There may be
cases where even a student, the claimant would have made
earnings on part-time basis or would have received offer for a
particular job. In such cases, these factors would also assume
relevance. After ascertaining the likely earning of the victim in
the said manner, the nature of injuries and disability suffered as a
result thereof would be kept in mind while determining as to how
much earning has been affected thereby. Here, impact of injuries
on functional disability is to be seen. In case of death of
victim, it would result in total loss of earning. In the case of
injuries, the nature of disability becomes important.
[Para 23][1107-E-H; 1108-A-D]
M.R. KRISHNA MURTHI v. THE NEW INDIA ASSURANCE
CO. LTD. & OTHERS
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