Facts
On 4 April 2010, the appellant, aged 19 years and travelling in a TSR, suffered grievous spinal injuries when a Santro car, allegedly driven rashly and negligently, struck the TSR near K.G. Marg, India Gate Outer Circle, causing it to overturn.
Source reference: p.1The appellant sustained a fracture of the D12 vertebra with complete paraplegia, bowel and bladder involvement, and 90% permanent physical disability.
Source reference: p.2; p.5He was working as a peon at the time of the accident.
Source reference: no citationThe Motor Accident Claims Tribunal awarded him ₹7,88,553 with interest at 7.5% per annum by award dated 9 July 2014.
Source reference: p.1In appeal, he sought enhancement on the grounds that his functional disability had been assessed at only 45%, compensation for pain, suffering and loss of amenities was inadequate, and no attendant charges had been awarded.
Source reference: p.2Issues
Whether, in view of the appellant’s complete paraplegia and 90% permanent physical disability, his functional disability and consequent loss of future earning capacity should be assessed at 90% rather than 45%?
Source reference: pp.2, 5Whether the compensation awarded for pain and suffering and loss of amenities of life was inadequate and required enhancement?
Source reference: p.2; p.6Whether the appellant was entitled to attendant charges for life, and if so, whether such charges should be calculated using the multiplier method?
Source reference: p.5; pp.8–9Whether the future-prospects component required modification from 50% to 40% in light of the applicable law?
Source reference: p.8Law Applied
The Court applied the principles in Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, that permanent physical disability is distinct from loss of earning capacity; the Tribunal must assess the claimant’s vocation, the functions affected, and the actual impact of disability on earning capacity.
Source reference: pp.2–5Where the evidence establishes that physical disability substantially corresponds to loss of earning capacity, the same percentage may be adopted.
Source reference: pp.3–5Relying on Kajal v. Jagdish Chand, (2020) 4 SCC 413, the Court held that attendant charges may be determined through the multiplier method, taking into account the claimant’s lifelong need for assistance, inflation, interest and longevity.
Source reference: pp.5–8The Court also applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, reducing future prospects from 50% to 40% for the claimant’s private employment.
Source reference: p.8For attendant charges, the Court adopted the minimum wages of a skilled worker in Uttar Pradesh at ₹3,290 per month and multiplier 18, corresponding to the claimant’s age of 19 years.
Source reference: p.8Reasoning
The Court found that the appellant’s disability was not merely a partial physical impairment: he had complete paraplegia with bowel and bladder involvement and would require lifelong assistance.
Source reference: pp.2, 5, 8Applying Raj Kumar, the Court considered the practical effect of the disability on his pre-accident occupation as a peon and concluded that he had no realistic opportunity to pursue any vocation; therefore, the functional disability was appropriately assessed at 90%, rather than 45%.
Source reference: p.5Given the severity and permanent nature of the injuries, the amounts of ₹50,000 each for pain and suffering and loss of amenities were held to be highly inadequate and were enhanced to ₹2,00,000 each.
Source reference: p.6Applying Kajal, the Court awarded attendant charges for the claimant’s lifetime at ₹3,290 × 12 × 18, amounting to ₹7,10,640.
Source reference: p.8It further corrected the future-prospects component from 50% to 40%, resulting in loss of future earnings of ₹12,24,720.
Source reference: p.8Holding
The appeal was allowed to the extent that the total compensation was enhanced from ₹7,88,553 to ₹23,67,705, with interest at 7.5% per annum.
The enhanced amount of ₹15,79,152, together with accrued interest, was directed to be deposited before the MACT within four weeks.
Source reference: p.9A lump sum of ₹5,00,000 was directed to be released to the claimant within two weeks thereafter, while the balance enhanced amount was to be placed in successive fixed deposit receipts of ₹25,000 each, with interest credited to the claimant’s savings account.
Source reference: pp.9–10The original award was directed to continue to be released in accordance with the Tribunal’s directions, and the appeal was disposed of accordingly.
Source reference: p.10Original Court PDF
Devinder YadavvsPraveen Khanna & Anr (National Insurance Company)
Click to open original judgment
Original judgment, available to read, download and summarize on LawLens.in
