APEX COURT HELD THAT
Motor Vehicles Act, 1988 — Section 166 — Compensation — Minor victim suffering 100% permanent disability — Assessment of notional income — Minimum wages basis — Substantial enhancement granted.
Claimant, aged about fourteen years, while travelling as pillion rider on motorcycle, sustained grievous injuries to neck, head and backbone when motorcycle driven rashly and negligently hit rear portion of tractor trolley. Claimant remained hospitalised for about 203 days and suffered 100% permanent disability. Motor Accident Claims Tribunal awarded compensation of ₹7,76,543/-, which was partially enhanced by High Court to ₹12,17,543/-. Claimant sought further enhancement before Supreme Court contending that notional income, attendant charges and compensation under various heads were inadequately assessed.
Held, for minor victim suffering permanent disability, notional income must be assessed on basis of minimum wages payable to skilled workman prevailing at relevant time. High Court erred in taking annual notional income at ₹30,000/-. Since minimum wages payable to skilled workman in Rajasthan in year 2016 were ₹5,746 per month, monthly income was rightly rounded off to ₹5,800 and future prospects at 40% added. Applying multiplier of 18, compensation towards loss of future income was recalculated at ₹17,53,920/-. Compensation was substantially enhanced considering permanent disability and lifelong impact upon claimant. (Paras 3 to 10)
Motor Vehicles Act, 1988 — Permanent disability — Attendant charges — Lifelong requirement of attendants — Multiplier method applicable.
Minor claimant suffered 100% permanent disability rendering him dependent on continuous assistance for rest of his life. High Court awarded only ₹1,21,800 towards attendant charges.
Held, where victim suffers total permanent disability and requires round-the-clock assistance, attendant charges must be realistically assessed keeping in view lifelong dependency. Applying principles laid down in Kajal v. Jagdish Chand, minimum wages payable to semi-skilled workman could be taken as basis for calculating attendant charges. Since claimant required assistance of two attendants throughout life, monthly attendant charges of ₹10,000 for two attendants were taken and multiplier of 18 applied, resulting in compensation of ₹21,60,000 under said head. Court further directed that substantial portion of amount be invested in fixed deposit to ensure future attendant expenses are adequately met. (Paras 6, 9 and 11)
Motor Vehicles Act, 1988 — Compensation — Pain and suffering — Loss of amenities — Future medical expenses — Marriage prospects — Liberal and realistic approach.
Claimant suffered catastrophic injuries resulting in complete permanent disability at age of fourteen years. High Court awarded limited amounts under heads of mental agony, future medical treatment and loss of marriage prospects.
Held, compensation in cases involving total permanent disability of minor must be just, fair and realistic, having regard to lifelong physical suffering, emotional trauma, social deprivation and loss of normal amenities of life. Considering severity of injuries and complete disability suffered at young age, Supreme Court enhanced compensation to ₹10,00,000 towards mental pain, suffering and loss of amenities, ₹3,00,000 towards future medical expenses, ₹3,00,000 towards loss of marriage prospects and ₹1,00,000 towards special diet and transportation. (Paras 6, 10 and 11)
Motor Vehicles Act, 1988 — Just compensation — Duty of Court — Compensation must account for future care and rehabilitation of permanently disabled victim.
Supreme Court considered adequacy of compensation awarded to permanently disabled minor claimant requiring lifelong medical support and attendant assistance.
Held, while awarding compensation under Motor Vehicles Act, Court must adopt humane and pragmatic approach ensuring that permanently disabled victim is financially secured for future care, rehabilitation and dignified existence. Compensation should not be illusory or symbolic but sufficient to meet recurring expenses arising from disability. Directions for structured investment of compensation amount may be issued to safeguard long-term interests of victim. (Paras 9 to 11)
Motor Vehicles Act, 1988 — Interest on compensation — Award of interest from date of claim petition till realization.
Held, enhanced compensation of ₹56,83,663 awarded to claimant shall carry interest at rate of 6% per annum from date of filing of claim petition till actual payment after adjusting amounts already paid. (Paras 10 and 11)
Compensation — Structured disbursement — Protection of interests of permanently disabled claimant.
While awarding ₹21,60,000 towards attendant charges, Supreme Court considered long-term financial protection of permanently disabled claimant.
Held, 25% of amount awarded towards attendant charges shall be immediately released to claimant and remaining 75% invested in fixed deposit so that interest accrual and periodic annual withdrawals may ensure continuous future attendant care and financial stability. (Para 11)
