Facts
On February 25, 2011, the first respondent (a 11-year-old student) sustained grievous injuries, including traumatic paraplegia and 100% permanent disability, after being hit by a car driven by respondent No. 1
Source reference: p. 1-2The Motor Accident Claims Tribunal (MACT) awarded compensation of Rs. 22,84,500 with 9% interest via an award dated August 1, 2013
Source reference: p. 1The Insurance Company appealed this award, challenging the application of an '18' multiplier, the quantum of attendant charges, and the grant of interest on future medical expenses
Source reference: p. 2Issues
1. Whether a multiplier of ‘18’ is applicable for a minor victim below the age of 15 years
Source reference: p. 32. Whether the Tribunal erred in its assessment of attendant charges and non-pecuniary heads
Source reference: p. 2, 53. Whether interest can be awarded on compensation related to future prospects and future medical expenses
Source reference: p. 10Law Applied
The Court applied Section 168 of the Motor Vehicles Act, 1988, which mandates the award of "just compensation"
Source reference: p. 8It relied on the Supreme Court precedents in Sarla Verma v. DTC regarding multiplier tables
Source reference: p. 3Kajal v. Jagdish Chand, which established that the multiplier system applies to attendant charges and that 24-hour care is essential for paraplegic victims
Source reference: p. 6-8It further followed Divya v. National Insurance Co. Ltd. and Baby Sakshi Greola v. Manzoor Ahmad Simon to justify an '18' multiplier for minors
Source reference: p. 4Regarding interest on future headers, it applied the principle from Oriental Insurance Co. v. Niru @ Niharika, holding that interest compensates for the delay in adjudication and disbursement
Source reference: p. 10-11Reasoning
The Court rejected the appellant's plea to reduce the multiplier to '15', affirming that established Delhi High Court and Supreme Court precedents fix '18' as the appropriate multiplier for children under 15
Source reference: para. 6-7In evaluating attendant charges, the Court found the Tribunal’s award of Rs. 150/day (totaling Rs. 9,72,000) to be conservative given the victim's 100% disability and lifelong need for a caregiver
Source reference: para. 10-11Exercising powers under Order XLI Rule 33 of the CPC, the Court enhanced these charges by applying the minimum wage for a 'skilled' worker (Rs. 7,826/month) as per 2011 Delhi Government notifications, resulting in an increased sum of Rs. 16,90,416
Source reference: para. 14-15Finally, the Court dismissed the objection to interest on future medical expenses, reasoning that claimants are deprived of the use of funds during the pendency of litigation, necessitating interest from the date of filing until disbursement
Source reference: para. 18-19Holding
The Court dismissed the Insurance Company's appeal and modified the award to enhance the total compensation from Rs. 22,84,500 to Rs. 30,02,916
The Court held that a multiplier of '18' is legally sound for an 11-year-old victim
Source reference: para. 7and that interest at 9% p.a. is payable on the entire award, including future medical expenses
Source reference: para. 21The appellant was directed to deposit the enhanced amount of Rs. 7,18,416 with the Registry within four weeks
Source reference: para. 22, 25Original Court PDF
National Insurance Co. Ltd. v. Rajesh & Ors. [MAC.APP. 911/2013]
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