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Case- Kajol worked in an electrical company. While working in the evening shift in the summer of 2012, she suffered a severe electric shock, which

Case- Kajol worked in an electrical company. While working in the evening shift in the summer of 2012, she suffered a severe electric shock, which was expected to keep her away from work for three years. Besides the pain and suffering, she is expected to spend on medical treatment Rs. 1,30,000 during the first year, Rs. 1,00,000 during the second year and Rs. 70,000 during the third year. At the time of accident Kajol was employed at the salary of Rs. 9,00,000 per year. Given by the past trend, her salary would have gone up at the rate of 20% per annum. Her total economic loss includes the medical expenses and the loss of income due to inability to work. Kajol's attorney files a compensation suit to the tune of Rs. 50,00,000 claiming that she be compensated Rs. 30,00,000 for economic loss and Rs. 20,00,000 for the physical and mental agony as well as shock. The attorney of the company objects to such a high demand for compensation. 1. Using economic logic will you agree with Kajol's attorney or the company's attorney? Give reasons. 2 . If the market rate of interest is 10% and Kajol's is to be provided full yearly salary and medical expenses during the year, how much money would compensate her for total economic loss

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