Motor Vehicles Act, 1988:
Motor accident – Leading to permanent disability to the extent of 75% – Claim for compensation – Tribunal granted Rs.7,00,000/- as a lump-sum compensation with interest @ 7% per annum – In first appeal, High Court held that for granting compensation multiplier method should be used and thereby enhanced the compensation amount to Rs.14,65,500/- with 9% interest per annum – In appeal, held: The purpose of compensation under the Act is to fully and adequately restore the aggrieved to the position prior to the accident – In the cases of accidents leading to injuries and disablements, person must not only be compensated for his physical injury, but also for non-pecuniary losses – The compensation amount is enhanced to Rs.20,29,000/- with 9% interest per annum from the date of application till the date of payment.
Allowing the appeal, the Court
HELD: 1. The purpose of compensation under the Motor Vehicles Act is to fully and adequately restore the aggrieved to the position prior to the accident. In cases of motor accidents leading to injuries and disablements, a person must not only be compensated for his physical injury, but also for the non-pecuniary losses which he has suffered due to the injury. The Claimant is entitled to be compensated for his inability to lead a full life, and enjoy those things and amenities which he would have enjoyed, but for the injuries. [Paras 5 and 6] [17-G-H]
Yadav Kumar v. The Divisional Manager, National Insurance Company Ltd. (2010) 10 SCC 341 :
[2010] 10 SCR 746 – referred to.
2. The Appellant was employed by witness No. 3 and was driving his personal car from 01.08.2008 on a monthly salary of Rs. 8,500/-. He also gave a certificate to that effect. The High Court erroneously concluded that it would be just and appropriate if the monthly income of the appellant is considered at Rs. 5,000/on the ground that the salary of Rs. 8500/- for a driver was on the higher side. [Para 4.3] [17-D-E]
3. The Appellant’s income was Rs. 8,500/- per month. The Appellant was 29 year at the time of the accident. The Multiplier would be 17. Where the claimant suffers a Permanent Disability as a result of injuries, the assessment of compensation for loss of future earnings would depend upon the impact and effect of the Permanent Disability on his earning capacity. The effect of the Permanent Disability on the earning capacity of the injured must be considered; and after assessing the loss of earning capacity in terms of a percentage of the income, it has to be quantified in terms of money, to arrive at the future loss of earnings suffered by the claimant. Loss of future income is calculated to Rs. 13,00,500/-. [Paras 7.1 and 7.2] [18-D, E-G; 19-A] Sarla Verma and Ors. v. Delhi Transport Corporation and Ors. (2009) 6 SCC 121 : [2009] 5 SCR 1098 ; Raj Kumar v. Ajay Kumar (2011) 1 SCC 343:
[2010] 13 SCR 179 – relied on.
4. The Appellant has claimed compensation for actual loss of income at Rs. 1,50,000/-. This claim of the Appellant cannot succeed. The grant of loss of future income compensates for any further period of time where income was lost. Actual loss of income can only be awarded for the month in which the accident took place. Therefore, one month’s salary being Rs. 8,500/- be awarded for the month of October. [Para 7.3] [19-B]
5. The Appellant has claimed reimbursement of Medical Expenses at Rs. 2,50,000/-. The Tribunal recorded that the Claimant had incurred total expenditure of Rs. 5,50,000/- till the date of the judgment for medicines, hospital charges, doctor’s fee, operation charges, travelling expenses and expense for special diet and granted Rs. 2,00,000/- as compensation based on actual expenditure. Since the Appellant has claimed expenses for special diet and attendance charges separately before this Court, therefore, it is appropriate to award Rs. 2,50,000/- as claimed on account of recurring medical expenses. [Para 7.4] [19-C-E]
6. The Appellant has claimed Rs. 90,000 for attendance and conveyance charges. The High Court had granted Rs. 70,000/-. Keeping in consideration the injury suffered, the Appellant has permanently lost the source of livelihood as his movement has got severely restricted with permanent impairment of the right side of his body. As he is permanently disabled for life, towards the attendance and conveyance charges Rs. 90,000/- is granted as claimed. [Para 7.5] [19-E-F]
7. The Appellant made a claim for Rs.1,00,000/- for special diet and nutrition. The High Court awarded Rs. 20,000/- on this account. This amount seems to be meager to this Court given inflationary trends, and increased costs of living. Therefore, compensation for special diet and nutrition be enhanced to Rs. 80,000/-. [Para 7.6] [19-G; 20-B]
Puttamma and Ors. v. K.L. Narayana Reddy and Anr. (2013) 15 SCC 45 : [2013] 16 SCR 831 – relied on.
8. The compensation for loss of amenities in future life is enhanced from Rs. 50,000/- to Rs. 1,00,000/-. [Para 7.7] [20-C]
9. In case of permanent disability to the extent of 75%, and loss of livelihood of the sole bread winner of the family, it is not only the victim, but also his kith and kin who face the trauma. The Appellant has had steel rods and artificial material inserted into his body through surgery. His income earning capacity has been reduced by 100%. In such circumstances, it is appropriate to award the appellant Rs. 2,00,000/- as compensation for the life-long pain and suffering by him and his family. [Para 7.8] [20-D]
10. The Appellant is entitled to payment of a total compensation of Rs. 20,29,000/- (Rupees Twenty Lakhs Twenty Nine Thousand Only) along with Simple Interest at 9% p.a. from the date of the application made before the Tribunal till the date of payment from both the Respondents, who are jointly and severally liable for the same. [Para 8] [21-A-B]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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