Summary
The Court increased compensation for the future earning loss of a student injured in a road accident and issued directions for improving motor accident claims mediation, payment and judicial training.
Issues
- How should future earning loss be assessed for an injured student who had not begun earning?
- What measures should improve mediation, processing and disbursement of motor accident compensation?
Held
- For a non-earning student, future earning capacity must be assessed in light of education, intended career, family background, interests and available opportunities. The effect of disability on earning capacity, rather than the physical disability percentage alone, governs the assessment. (¶¶ 17, 18, 19, 20, 21, 22, 23)
- On the claimant’s educational and family circumstances and restricted mobility, monthly loss of earning capacity was assessed at Rs 5,000. Applying multiplier 18 to annual loss of Rs 60,000 produced Rs 10,80,000, requiring an additional Rs 6,54,000 with interest as awarded below. Any voluntary charitable contribution remained his choice. (¶¶ 24, 25, 26)
- The Government was asked to examine the feasibility of mediation legislation and a statutory Motor Accident Mediation Authority. NALSA was directed to prepare a project for Motor Accident Mediation Cells within two months and arrange their immediate functioning through the legal services authorities. (¶¶ 27, 28, 29, 30, 39)
- The modified claims procedure was to operate nationwide with NALSA coordinating with the High Courts. The Motor Accident Claims Annuity Deposit Scheme was to apply across India through the identified 21 banks and claims tribunals; the Government was to examine the proposed annuity-certificate arrangements within six months. (¶¶ 31, 32, 33, 34, 35, 36, 38, 39)
- State Judicial Academies were directed to arrange regular training for claims tribunal presiding officers, senior police officials and insurance officers concerned with motor accident claims. (¶¶ 37, 39)
Result
Appeals disposed of with additional compensation of Rs 6,54,000 and interest as awarded below, and directions concerning mediation, claims procedure, annuity deposits and training.