How the Commissioner can assess the loss of earning capacity to determine the compensation?

 

The loss of earning capacity has to be determined by taking into account the destruction or diminution of physical capacity as disclosed by the medical evidence and when it has to be seen to what extent such destruction should reasonably be taken to have disabled the affected workman of his class ordinarily.

Physical capacity is an important factor in the assessment of loss of earning capacity. In the absence of medical evidence by the doctors examining the claimant on behalf of either side, it is difficult to measure the physical disability of the claimant and thus also destruction or otherwise of the earning capacity.

The Calcutta High Court in the case of Ram Naresh Singh vs. Lodhina Colliery Company Ltd., has declared the four principles for determining the loss of earning capacity;

1. Earning is not the same as earning capacity;

2. Rise in earning may be because of various factors and rise in wages is not, therefore, decisive proof that there is no loss of earning capacity;

3. Loss of physical capacity or physical incapacity may be relevant in assessing as to upto what extent there is loss of earning capacity;

4. Loss of physical capacity or physical incapacity may be relevant in assessing to what extent there is loss of earning capacity from “every employment” which the workman was capable of undertaking at the time of the accident or re-employment in which he was engaged at the time.

Orissa HC in the case of Prasanta Kumar Manjhi vs Managing Director, Orissa Mining Corporation, has held that when the employee continues in the same employment after accident and earns same salary, he can not be said to have suffered any loss of earning capacity and so not entitled to get any compensation.

 

 

By Dayanand N. Mangaonkar