National Insurance Company Ltd vs Pranay Sethi Son Of Late Prashant Sethi ... on 20 April, 2011
4. In above facts and circumstances while the conclusion of the
tribunal about the extent of disability to be 40% is correct, error in
computation of compensation for loss of income due to disability has
crept in due to the assumption that the claimant's income be taken as
Rs. 15,000/- per annum. It appears, the tribunal has gone by the
prescription in the Second Schedule appended to the Motor Vehicles
Act, 1988. The present case is under Section 166 of Motor Vehicles
Act, 1988. The calculation of loss of income due to disability should
have been made with the help of minimum wages of Rs. 2783.90 as
payable on the relevant date to an unskilled worker, there being
nothing on record to show any educational or trade qualifications of
the claimant. It may be added that in computing the loss of future
income due to disability, the element of future prospects to the extent
MAC App. No.174/2011 Page 3 of 5
of 40% will have to be added. [see judgment of the Constitution
Bench of the Supreme Court rendered on 31.10.2017 in SLP (C)
25590/2014, National Insurance Company Ltd. Vs. Pranay Sethi and
Ors.,]. Thus, the loss of income due to permanent disability in future is
computed with the multiplier of 16 as (2783.9 x 140 ÷ 100 x 40 ÷ 100
x 12 x 16) Rs, 2,99,325, rounded of to Rs. 3,00,000/-.