Summary
A 21-year-old student who suffered 100% permanent disability and was left in a vegetative state after a bus accident was awarded compensation by the Claims Tribunal, which the High Court reduced by Rs. 19 lakh. The Supreme Court held the reduction unjustified, restored the heads set aside without reasons, and enhanced the compensation for future medical expenses, attendant charges and permanent disability, holding that compensation for permanent disability is a head distinct from loss of future income.
Issues
- Whether the High Court was justified in reducing the compensation awarded by the Claims Tribunal under the heads of future medical expenses and attendant charges and in setting aside the compensation for permanent disability, loss of enjoyment of life and amenities, and pain and suffering of family members.
- Whether the claimant was entitled to enhancement of the compensation under those heads.
Provisions considered
- Section 166, Motor Vehicles Act, 1988The claim petition was filed under Section 166 and the Court, after re-determining the amounts under the disputed heads, fixed the compensation to which the claimant was entitled under that section and directed payment of the unpaid amount within four weeks with interest at the rate ordered by the Tribunal. (¶¶ 2, 14)
Held
- The findings on the occurrence of the accident, rash and negligent driving, ownership of the vehicle and the insurer's liability were affirmed by the High Court and not challenged by any respondent; the only question in the appeals was the claimant's prayer for enhancement. (¶ 7)
- The reduction of future medical expenses from Rs. 9 lakh to Rs. 2 lakh was wholly unjustified. While Rs. 3,000 per month was reasonable, confining the expenses to 25 years would cover the claimant only until the age of 46; keeping in view average life expectancy, and the interest that part of a lump sum would earn, Rs. 15 lakh was awarded under this head. (¶¶ 8, 9)
- The High Court set aside the Rs. 3 lakh awarded for loss of enjoyment of life and amenities without assigning any reason; in the light of the claimant's permanent disability the award did not warrant interference and was restored. (¶ 10)
- A claimant with 100% permanent physical disability, who needs a water bed and a wheelchair even to attend nature's call, will require an attendant for the rest of his life; the Tribunal's award computed for 25 years and reduced by the High Court to Rs. 3 lakh was replaced by a lump sum of Rs. 10 lakh. (¶ 11)
- Where the Claims Tribunal awarded compensation for pain and suffering of the claimant's family members by relying on a Division Bench judgment of the same High Court, a coordinate Bench could not ignore that judgment and set aside the award without reasons; the Rs. 3 lakh awarded under this head was restored. (¶ 12)
- Compensation for loss of future income is a head distinct from compensation for permanent disability; the High Court had no basis to set aside the award for permanent disability merely because loss of income had been compensated. Considering the 100% disability and vegetative state of the claimant, Rs. 5 lakh was awarded under this head. (¶ 13)
Result
Appeals allowed; the High Court's findings reducing the compensation by Rs. 19 lakh set aside and the compensation under Section 166 enhanced as determined by the Court; the unpaid amount to be paid within four weeks with interest at 7.5% per annum as directed by the Claims Tribunal; parties to bear their own costs.