Tampered medical bills warrant deduction of the fraudulent amount, not rejection of the entire compensation claim.

The insurer appealed an award of ₹1,03,96,200 following a motor accident in which the claimant, then aged 27, suffered paraplegia and was assessed as 100% disabled.

The accident and the insurer’s liability to satisfy the compensation were not disputed.

The insurer alleged that the claimant had tampered with medical bills, challenged the negligence finding, and opposed 9% interest on future medical expenses and attendant charges.

The Tribunal had referred the alleged bill fraud for an inquiry by a Magistrate.

1. Whether the alleged tampering with medical bills warranted rejecting the entire claim or reducing the medical-expense award.

2. Whether the Tribunal’s finding that the insured vehicle’s driver was solely negligent should be disturbed.

3. Whether 9% interest was properly awarded on future medical expenses and attendant charges.

The judgment cites no statute or precedent. It applies the principles that compensation should reflect the established loss and that the interest rate may be adjusted for particular heads of compensation in light of the circumstances.

It also assesses negligence from the evidence on record, including the parties’ testimony and the police investigation.

The Court rejected the insurer’s request to dismiss the entire claim on account of the alleged bill fraud. It reduced the medical-expense award by ₹18,000, the amount attributed to the tampered bill, while maintaining the Magistrate’s inquiry.

On negligence, the claimant had not been asked in cross-examination whether he was overtaking another vehicle, and the Court found no basis to disturb the Tribunal’s finding against the insured vehicle’s driver.

Given the ten-year interval between the accident and the award, the Court held that the claimant would have incurred expenses for medical care and an attendant, but reduced interest on those two heads from 9% to 5%.

The Court fixed medical expenses at ₹8,67,000 and the total compensation at ₹1,03,78,200. The claimant was allowed 5% interest on future medical expenses of ₹3,00,000 and attendant charges of ₹17,13,600, and 9% interest on the remaining sums. The Magistrate’s inquiry into the alleged medical-bill fraud was maintained.