NEW INDIA ASSURANCE CO. LTD. Vs. SHASHI GOYAL

JUDGEMENT

(1.) THE Appellant New India Assurance Co. Ltd. impugns a judgment dated 12.11.2010 passed by the Motor Accident Claims Tribunal(Claims Tribunal) whereby a compensation of Rs.9,25,020/ - was awarded to the First Respondent for having suffered amputation of the left leg below knee in an accident which occurred on 04.10.2008. It was proved on record that the First Respondent was hospitalized for about three months. She was engaged in giving home tuition to the science students of 10+2 at their respective homes. She had an income of Rs.1,26,492/ - which included an income of Rs.23,892/ - from house property and Rs.1,02,600/ - from tuitions as per the Income Tax Return Ex.PW1/10 for the Assessment Year 2008 -09 filed on 31.07.2008 (three months before the accident).

(2.) THE Claims Tribunal calculated the loss of earning capacity at 70% and awarded the compensation, which is tabulated hereunder: <FRM>JUDGEMENT_457_LAWS(DLH)4_20121.htm</FRM>

(5.) IN Raj Kumar v. Ajay Kumar & Anr., : 2011 (1) SCC 343, the Supreme Court brought out the difference between permanent disability and functional disability resulting in the loss of earning capacity. It was laid down that the compensation on account of loss of earning capacity has to be granted in accordance to the nature of job undertaken by the victim of motor accident. Paras 11 and 14 of the report are extracted hereunder: