Summary
A 21-year-old veterinary student rendered quadriplegic (100% permanent disability) in a motor accident sought enhancement of the Rs.15,25,600 awarded by the High Court. The Supreme Court raised his notional income from Rs.5,600 to Rs.7,500 per month (the High Court figure being below the minimum wage for unskilled workers), added 40% future prospects, and awarded or enhanced attendant charges, special diet, pain and suffering, physiotherapy, future medical expenses and loss of marriage prospects, fixing total compensation at Rs.36,84,000 payable by the insurer directly into the claimant's bank account. The Court also issued general directions that motor accident compensation be transferred directly to claimants' bank accounts instead of being deposited with the Tribunal.
Issues
- Whether the notional income of Rs.5,600 per month taken by the High Court for a 21-year-old student with sporting and technical credentials, who became 100% disabled, was adequate.
- Whether future prospects, attendant charges, special diet, pain and suffering, physiotherapy, future medical expenses and loss of marriage prospects should be awarded or enhanced in a case of quadriplegia.
- Whether compensation awarded in motor accident cases should be deposited with the Tribunal or transferred directly to the bank accounts of the claimants, and what procedure Tribunals should follow.
Provisions considered
- Compensation for injury in a motor accident and its disbursement (no specific section discussed), Motor Vehicles Act, 1988The Court re-assessed the compensation under the Act using the multiplier method with future prospects and separate heads for a 100% disabled claimant, and, treating the Act as beneficial legislation whose object is to compensate without delay, directed that compensation held payable by insurers be transferred directly to the claimants' bank accounts with intimation to the Tribunal, such transfer being treated as satisfaction of the award. (¶¶ 9, 10, 11, 17, 17.1, 18, 19)
Held
- For a 21-year-old claimant who was training to be a veterinary doctor, had played volleyball at a district school games level and had completed a pig-farming course, taking income at Rs.5,600 per month, which was less than the minimum wage of Rs.6,447.75 for an unskilled worker and Rs.7,227.75 for a semi-skilled worker prevailing at the time, was inappropriate; income was assessed at Rs.7,500 per month. (¶¶ 8, 9)
- The multiplier of 18 was rightly applied but the High Court erred in not granting future prospects, which in the claimant's case should be 40%; loss of income was therefore computed as Rs.7,500 x 1.4 x 12 x 18 = Rs.22,68,000. (¶¶ 10, 11)
- A claimant with 100% permanent disability who must live his whole life needing an attendant and a special diet deserves a lump sum for attendant charges (Rs.5,00,000), enhanced special diet (Rs.1,00,000) and pain and suffering (Rs.1,00,000), and separate amounts for future medical expenses (Rs.2,00,000) and loss of marriage prospects (Rs.2,00,000). Although physiotherapy receipts not supported by counterfoils or account books could not be relied upon, judicial notice may be taken that physiotherapy would be needed and a lump sum of Rs.50,000 was awarded. (¶¶ 8, 10, 11)
- Depositing compensation with the Tribunal for later withdrawal by the claimant causes delay, expense and loss of interest and carries risks of error; in motor accident cases where the insurer's liability is undisputed, the amount should instead be transferred directly to the claimant's bank account with intimation to the Tribunal. (¶¶ 14, 14.4, 14.5, 14.6, 17, 19)
- Directions to Tribunals: require claimants at the pleadings or evidence stage to furnish bank account particulars with proof (opening an account individually or jointly only with family members if they have none), keep them updated before the award, ensure accounts are in the claimant's name (through a guardian for minors) and never jointly with a non-family member; the award should direct transfer to those accounts, which will be treated as satisfaction of the award; where part of the amount is to be kept in fixed deposit, the award itself may so direct and the bank must comply and report to the Tribunal. (¶¶ 17.1, 18)
- Courts and Tribunals may follow the same direct bank-transfer process in any matter in which one party is to pay an amount to another, ensuring proper compliance; copy of the order to be circulated to all High Courts and to the National and State Judicial Academies. (¶¶ 20, 21)
Result
Appeal allowed; High Court award modified and total compensation fixed at Rs.36,84,000 with interest at the rate awarded by the High Court on the enhanced amount; the insurer (respondent no.3) to transfer the enhanced compensation with up-to-date interest to the appellant's bank account within six weeks, the appellant furnishing account particulars within two weeks; Registry to circulate the order to all High Courts and the judicial academies; pending applications disposed of.