Syed Sadiq v. United India Insurance Co. Ltd., (2014) 2 SCC 735
S. 166 - Compensation - Determination of - Proof of income - When not mandatory - Self-employed labour in
unorganised sector - Claimant, a vegetable vendor sustaining 85% functional disability in motor accident - Held, cannot
be expected to produce documents to prove his monthly income - Tribunal as well as High Court erred in asking for the
same - Considering present state of economy and rising prices in agricultural products, held, vegetable vendor
reasonably capable of earning Rs 6500 p.m. - Compensation awarded accordingly,
Motor Vehicles Act, 1988
S. 166 - Compensation - Permanent disability - Estimation of functional disability or loss of earning capacity - Manual
labour cases where loss of limb is often equivalent to loss of livelihood - Impact of permanent disability on earning
capacity - Appellant claimant, vegetable vendor aged about 24 yrs sustaining injuries to lower end of right femur, left
upper arm and his right leg had to be amputated - Held, occupation of vegetable vending is not confined to selling
vegetables from a particular location but involves procuring vegetables from wholesale market or farmers and then
selling it in retail market, often in cart which requires 100% mobility - Hence, his functional disability estimated at 85%
(High Court determining disability at 65%) for determining loss of income,
S. 166 - Compensation - Determination of - Proof of income - When not mandatory - Self-employed labour in
unorganised sector - Claimant, a vegetable vendor sustaining 85% functional disability in motor accident - Held, cannot
be expected to produce documents to prove his monthly income - Tribunal as well as High Court erred in asking for the
same - Considering present state of economy and rising prices in agricultural products, held, vegetable vendor
reasonably capable of earning Rs 6500 p.m. - Compensation awarded accordingly, (2014) 2 SCC 735-B
S. 166 - Compensation - Income - Calculation of prospective increment of self-employed people - Claimant, a vegetable
vendor, aged about 24 yrs suffering 85% functional disability in motor accident - Held, is entitled to 50% increment in
future prospects of income, (2014) 2 SCC 735-C
S. 166 - Compensation - Multiplier - Appropriate multiplier - Claimant aged about 24 yrs - Following Sarla Verma, (2009)
6 SCC 121, held multiplier would be 18 for the purpose of calculating compensation, (2014) 2 SCC 735-D
S. 166 - Compensation - Permanent disability - Amputation of right leg - Medical expenses - Held, considering that
appellant may be required to change his artificial leg from time to time Rs 1 lakh awarded for medical costs and incidental
expenses including future medical costs, (2014) 2 SCC 735-E
S. 166 - Compensation - Cost of litigation - Claimant, vegetable vendor suffering 85% functional disability in motor
accident - Held, entitled to litigation costs amounting to Rs 25,000, S. 166 - Compensation - Computation of - Permanent disability - Appellant claimant, a vegetable vendor aged about 24
yrs suffering 85% functional disability in motor accident in which his right leg was amputated - Held, claimant entitled to
Rs 17,90,100 under the head of loss of future income including 50% increase in future, cost of litigation Rs 25,000,
medical and incidental costs Rs 1,00,000, loss of amenities Rs 75,000, loss of marriage prospects Rs 50,000, pain and
suffering Rs 75,000, and cost of artificial leg Rs 50,000, thus claimant entitled to total compensation of Rs 21,65,100 with
interest @ 9% p.a.,
S. 166 - Compensation - Permanent disability - Estimation of functional disability or loss of earning capacity -
Occupation involving manual labour - Held, Court should be sensitive in such cases - Appellant claimant vegetable
vendor sustaining type-3 compound fracture of right femur, tibia, middle shaft tibia and fibula - Held, High Court erred in
fixing his functional disability on lower side at 25% - Determining his functional disability at 35%, average monthly income
at Rs 6500, increment on future income at 50% and applying multiplier of 18, claimant entitled to Rs 7,37,100 under head
of loss of future income, litigation costs at Rs 25,000, pain and suffering Rs 60,000, medical and incidental charges Rs
1,00,000, loss of amenities Rs 40,000, future medical expenses Rs 15,000, thus total compensation amounting to Rs
9,77,100 with interest @ 9% p.a.,
S. 166 - Compensation - Permanent disability - Manual labour - Estimation of functional disability - Appellant claimant,
cleaner of lorries by profession, aged about 22 yrs suffering from comminuted fracture (i.e. producing multiple bone
splinters) in accident consequent to which he is unable to bend, stretch or rotate his right hand, nor able to lift heavy
objects which was an essential feature of his livelihood - Hence, his functional disability assessed at 85% (High Court
determining functional disability at 13%) - Based on Karnataka State Minimum Wages Rules, appellant entitled to Rs
4246 p.m. which rounded off to Rs 4300, and adding barter charges Rs 700, his monthly income determined as Rs 5000 -
Applying multiplier of 18 and 50% increase in future loss of income appellant entitled to Rs 13,77,000 under head of loss
of future income, Rs 60,000 towards pain suffering, Rs 50,000 towards medical and incidental expenses, Rs 50,000
towards loss of amenities, Rs 5000 towards future expenses and Rs 25,000 towards litigation costs, in total
compensation amounting to Rs 15,67,000 with 9% interest p.a.,
Tort Law
Negligence
Proof - Accident taking place in middle of road - Held, in absence of any evidence to prove contributory negligence by
appellants, they cannot be fastened with such liability,
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S. 166 - Compensation - Determination of - Proof of income - When not mandatory - Self-employed labour in
unorganised sector - Claimant, a vegetable vendor sustaining 85% functional disability in motor accident - Held, cannot
be expected to produce documents to prove his monthly income - Tribunal as well as High Court erred in asking for the
same - Considering present state of economy and rising prices in agricultural products, held, vegetable vendor
reasonably capable of earning Rs 6500 p.m. - Compensation awarded accordingly,
Motor Vehicles Act, 1988
S. 166 - Compensation - Permanent disability - Estimation of functional disability or loss of earning capacity - Manual
labour cases where loss of limb is often equivalent to loss of livelihood - Impact of permanent disability on earning
capacity - Appellant claimant, vegetable vendor aged about 24 yrs sustaining injuries to lower end of right femur, left
upper arm and his right leg had to be amputated - Held, occupation of vegetable vending is not confined to selling
vegetables from a particular location but involves procuring vegetables from wholesale market or farmers and then
selling it in retail market, often in cart which requires 100% mobility - Hence, his functional disability estimated at 85%
(High Court determining disability at 65%) for determining loss of income,
S. 166 - Compensation - Determination of - Proof of income - When not mandatory - Self-employed labour in
unorganised sector - Claimant, a vegetable vendor sustaining 85% functional disability in motor accident - Held, cannot
be expected to produce documents to prove his monthly income - Tribunal as well as High Court erred in asking for the
same - Considering present state of economy and rising prices in agricultural products, held, vegetable vendor
reasonably capable of earning Rs 6500 p.m. - Compensation awarded accordingly, (2014) 2 SCC 735-B
S. 166 - Compensation - Income - Calculation of prospective increment of self-employed people - Claimant, a vegetable
vendor, aged about 24 yrs suffering 85% functional disability in motor accident - Held, is entitled to 50% increment in
future prospects of income, (2014) 2 SCC 735-C
S. 166 - Compensation - Multiplier - Appropriate multiplier - Claimant aged about 24 yrs - Following Sarla Verma, (2009)
6 SCC 121, held multiplier would be 18 for the purpose of calculating compensation, (2014) 2 SCC 735-D
S. 166 - Compensation - Permanent disability - Amputation of right leg - Medical expenses - Held, considering that
appellant may be required to change his artificial leg from time to time Rs 1 lakh awarded for medical costs and incidental
expenses including future medical costs, (2014) 2 SCC 735-E
S. 166 - Compensation - Cost of litigation - Claimant, vegetable vendor suffering 85% functional disability in motor
accident - Held, entitled to litigation costs amounting to Rs 25,000, S. 166 - Compensation - Computation of - Permanent disability - Appellant claimant, a vegetable vendor aged about 24
yrs suffering 85% functional disability in motor accident in which his right leg was amputated - Held, claimant entitled to
Rs 17,90,100 under the head of loss of future income including 50% increase in future, cost of litigation Rs 25,000,
medical and incidental costs Rs 1,00,000, loss of amenities Rs 75,000, loss of marriage prospects Rs 50,000, pain and
suffering Rs 75,000, and cost of artificial leg Rs 50,000, thus claimant entitled to total compensation of Rs 21,65,100 with
interest @ 9% p.a.,
S. 166 - Compensation - Permanent disability - Estimation of functional disability or loss of earning capacity -
Occupation involving manual labour - Held, Court should be sensitive in such cases - Appellant claimant vegetable
vendor sustaining type-3 compound fracture of right femur, tibia, middle shaft tibia and fibula - Held, High Court erred in
fixing his functional disability on lower side at 25% - Determining his functional disability at 35%, average monthly income
at Rs 6500, increment on future income at 50% and applying multiplier of 18, claimant entitled to Rs 7,37,100 under head
of loss of future income, litigation costs at Rs 25,000, pain and suffering Rs 60,000, medical and incidental charges Rs
1,00,000, loss of amenities Rs 40,000, future medical expenses Rs 15,000, thus total compensation amounting to Rs
9,77,100 with interest @ 9% p.a.,
S. 166 - Compensation - Permanent disability - Manual labour - Estimation of functional disability - Appellant claimant,
cleaner of lorries by profession, aged about 22 yrs suffering from comminuted fracture (i.e. producing multiple bone
splinters) in accident consequent to which he is unable to bend, stretch or rotate his right hand, nor able to lift heavy
objects which was an essential feature of his livelihood - Hence, his functional disability assessed at 85% (High Court
determining functional disability at 13%) - Based on Karnataka State Minimum Wages Rules, appellant entitled to Rs
4246 p.m. which rounded off to Rs 4300, and adding barter charges Rs 700, his monthly income determined as Rs 5000 -
Applying multiplier of 18 and 50% increase in future loss of income appellant entitled to Rs 13,77,000 under head of loss
of future income, Rs 60,000 towards pain suffering, Rs 50,000 towards medical and incidental expenses, Rs 50,000
towards loss of amenities, Rs 5000 towards future expenses and Rs 25,000 towards litigation costs, in total
compensation amounting to Rs 15,67,000 with 9% interest p.a.,
Tort Law
Negligence
Proof - Accident taking place in middle of road - Held, in absence of any evidence to prove contributory negligence by
appellants, they cannot be fastened with such liability,
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