Jithendran vs The New India Assurance Co. Ltd. & Anr.

Allowing the appeal, the Court

HELD: 1. The appellant has suffered 69% permanent disability and without assistance, cannot perform everyday functions. The claimant with seriously impaired cognitive and physical capabilities would surely need full time assistance even for the confined life that he is leading. In such circumstances, the disabled claimant cannot be expected to rely only upon gratuitous services of his well wishers and family members. Importantly, the presiding judge in the Tribunal himself noticed that the claimant would require the assistance of a bystander/attendant for all his movements. Consequently, bearing in mind the need for assisted living it is found necessary to add the expenses for service of an attendant for the claimant. Since no material is produced to quantify the expenses for the attendant, making a conservative estimate, Rs.5,000/- per month appears to be the bare minimum. It is therefore deemed appropriate to quantify the annual expenses at Rs.60,000/- and applying the multiplier of 18, the additional compensation payable under the bystander head is quantified at Rs.10,80,000/-. [Para 8][154-C-E] Kajal v. Jagdish Chand and Others (2020) 4 SCC 413 – relied on.

2. The appellant has produced adequate medical documents before the High Court to show the recurring needs for testing, treatment and further hospitalisation for which, considerable expenses were incurred even after the initial 191 days of hospitalization. As a person suffering severe cognitive impairment and 69% disability, recurring medical treatment is inevitable and bearing in mind the additional expenses already incurred, it is deemed appropriate to enhance the future medical expenses to Rs.3,00,000/- (from Rs.1,00,000/-), since the sum quantified by the High Court appears to be on the lower side. [Para 9] [154-F-G]

3. While the permanent disability as certified by the doctors stands at 69%,the same by no means, adequately reflects the travails the impaired claimant will have to face all his life. The 21 year old’s youthful dreams and future hopes were snuffed out by the serious accident. The young man’s impaired condition has certainly impacted his family members. Their resources and strength are bound to be stressed by the need to provide full time care to the claimant. For the appellant to constantly rely on them for stimulation and support is destined to cause emotional, physical and financial fatigue for all stakeholders. [Para 10] [154-G-H; 155-A-B]

4. The Motor Vehicles Act is in the nature of social welfare legislation and its provisions make it clear that the compensation should be justly determined. A person therefore is not only to be compensated for the injury suffered due to the accident but also for the loss suffered on account of the injury and his inability to lead the life he led, prior to the life altering event. [Para 11] [155-B-C, D-E]

Jagdish v. Mohan and others (2018) 4 SCC 57 : [2018]

3 SCR 20; Helen C. Rebello and Others v. Maharashtra SRTC and Anr. (1999) 1 SCC 90 : [1998] 1 Suppl. SCR 684 – relied on.

5. The Courts should strive to provide a realistic recompense having regard to the realities of life, both in terms of assessment of the extent of disabilities and its impact including the income generating capacity of the claimant. In cases of similar nature, wherein the claimant is suffering severe cognitive dysfunction and restricted mobility, the Courts should be mindful of the fact that even though the physical disability is assessed at 69%, the functional disability is 100% in so far as claimant’s loss of earning capacity is concerned. The extent of economic loss arising from a disability may not be measured in proportions to the extent of permanent disability. [Paras 12, 13][155-G; 156-A-B]

Chanappa Nagappa Muchalagoda v. Divisional

Manager, New India Insurance Company Limited (2020)

1 SCC 796 : [2019] 14 SCR 556; Raj Kumar v. Ajay Kumar and Anr. (2011) 1 SCC 343 : [2011] 1 SCC 343 – relied on.

6. The impact on the earning capacity for the claimant by virtue of his 69% disability must not be measured as a proportionate loss of his earning capacity. The earning life for the appellant is over and as such his income loss has to be quantified as 100%. There is no other way to assess the earning loss since the appellant is incapacitated for life and is confined to home. In such circumstances, his loss of earning capacity must be fixed at 100%. As his monthly income was Rs.4,500/-, adding 40% future prospect thereto,the monthly loss of earning is quantified as Rs.6,300/-. Therefore, compensation for 100% loss of earning for the claimant is quantified at Rs.13,60,800/(Rs.6,300 x 12 x 18). Accordingly, under this head, the amount awarded by the High Court is enhanced proportionately. [Para 16][159-A-C]

7. The lesser amount for 6 months earning loss during hospitalization, must also be corrected. The claimant was awarded Rs.12,000/- for his hospitalization in the aftermath of the accident. But the lower figure does not correctly correspond to six months loss, when the income was Rs. 4500/- p.m. Accordingly, the amount under this head is corrected as Rs.27,000/- (Rs.4,500 x 6). [Para 17][159-D]

8. In cases such as this, the Tribunal and the Courts must be conscious of the fact that the permanent disability suffered by the individual not only impairs his cognitive abilities and his physical facilities but there are multiple other non-quantifiable implications for the victim. The very fact that a healthy person turns into an invalid, being deprived of normal companionship, and incapable of leading a productive life, makes one suffer the loss of self-dignity. The efforts must be to substantially ameliorate the misery of the claimant and recognize his actual needs by accounting for the ground realities. The measures should however be in correct proportion. [Para 19][159-G-H; 160-A-B]

Pappu Deo Yadav v. Naresh Kumar and others

(2020) SCC Online 752; Sarla Verma and Others v. Delhi Transport Corporation and Another (2009) 6 SCC 121 : [2009] 5 SCR 1098 – relied on.