Supreme Court Enhances Compensation for Victim in Motor Accident Claim

The Supreme Court of India has delivered a landmark judgment in the case of Jithendran vs. The New India Assurance Co. Ltd., significantly increasing compensation for a motor accident victim who suffered 69% permanent disability. The ruling underscores the judiciary’s commitment to ensuring fair compensation under the Motor Vehicles Act, 1988, especially for those facing life-altering injuries.

Background of the Case

The case originated from a motor accident on April 13, 2001, in which the appellant, Jithendran, was riding pillion on a motorcycle that was hit by a car. The accident caused severe head injuries, leaving him bedridden with cognitive impairment, hemiparesis, and total aphasia. He remained hospitalized for 191 days and was later declared 69% permanently disabled.

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Initially, the Motor Accident Claims Tribunal (MACT), Thrissur, awarded compensation of Rs. 5,74,320. Dissatisfied with the award, Jithendran approached the Kerala High Court, which increased the compensation to Rs. 14,31,752. Still aggrieved, he appealed to the Supreme Court for further enhancement.

Arguments by the Petitioner (Jithendran)

The appellant’s counsel, Mr. A. Karthik, argued that:

• The 69% permanent disability assessment did not accurately reflect the victim’s total incapacity to earn a livelihood, and the compensation should be based on 100% disability.
• Future medical expenses should be increased as the claimant required ongoing treatment.
• Compensation for the service of a full-time attendant should be included.
• The loss of earnings for the six-month hospitalization period was incorrectly calculated and should be revised.

Arguments by the Respondents (New India Assurance Co. Ltd.)

The insurance company, represented by Mr. JPN Shahi, contended that:

• The compensation already awarded by the High Court was sufficient.
• Since permanent disability was assessed at 69%, compensation under that head did not require further enhancement.
• The High Court had already included future medical expenses of Rs. 1,00,000, and no further amount was warranted.
• There was no evidence to support the claim for an attendant’s expenses.

Supreme Court’s Judgment

The Supreme Court partially allowed the appeal, ruling in favor of enhanced compensation. Key observations from the judgment include:

• The petitioner’s disability assessment should not be limited to 69% when considering loss of earning capacity. Given the severity of his injuries, the Court ruled that he should be treated as having 100% loss of earning capacity.
• Permanent disability must be assessed in relation to its impact on the victim’s ability to work, rather than as a mere percentage of physical impairment.
• Future medical expenses were increased from Rs. 1,00,000 to Rs. 3,00,000, considering the ongoing treatment needs.
• Compensation for an attendant was deemed necessary, and Rs. 10,80,000 was awarded under this head.
• Loss of earnings for the hospitalization period was increased from Rs. 12,000 to Rs. 27,000.

The Court referred to the cases of Kajal vs. Jagdish Chand, Raj Kumar vs. Ajay Kumar, and Pappu Deo Yadav vs. Naresh Kumar, emphasizing that disability assessment should reflect real-life impact and financial loss.

Read also: https://judgmentlibrary.com/supreme-court-upholds-high-courts-compensation-award-in-fatal-road-accident-case/

Final Compensation Awarded

Conclusion

The Supreme Court’s ruling in this case sets a significant precedent for compensation claims under the Motor Vehicles Act. By recognizing the full extent of the victim’s financial and medical hardships, the judgment ensures that accident victims receive fair and just compensation. The decision emphasizes that courts must consider functional disability and real-world consequences rather than relying solely on medical disability percentages.

Petitioner Name: Jithendran.
Respondent Name: The New India Assurance Co. Ltd. & Anr..
Judgment By: Justice R. Subhash Reddy, Justice Hrishikesh Roy.
Place Of Incident: Thrissur, Kerala.
Judgment Date: 27-10-2021.

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