Motor Accident Claim- SC Awards Rs. 22,00,000 as Compensation

Accident Claim - Compensation under Motor Vehicles Act

Accident Claim - Compensation under Motor Vehicles Act

November 08, 2017

Ankur Kapoor Thr. Gpa vs Oriental Insurance Company Ltd. 

Date of Judgment: November 06, 2017

In this recent case, the Appellant sought enhancement of compensation. The Appellant appealed against the order High Court of Punjab and Haryana, whereby the High Court awarded a total compensation of Rs.8,80,000/- along with interest for motor accident claim made by the Appellant.

Background of the case– The Appellant had met with an accident in 2000 and had sustained grievous injuries on his right arm which resulted in permanent disability to the extent of 50% to his right arm.

Also read Accident Claims – How to get compensation under Motor Vehicles Act ?

According to the facts of case, at the time of accident, the appellant was “Dec Cadet trainee” of Merchant Navy in the Binnyship Management Company Ltd. and as a trainee, he was getting fifty US dollars per month as salary, apart from free boarding and lodging. The Appellant claimed that he would have become “third Officer” after 18 months and the said post was attached with the salary of 1500 US dollars per month. According to the appellant, he would have then become “Chief Officer” within three years and then “Captain” of the ship after about eight years of the service, but as a result of accident and as a result of permanent disability to the right arm of the appellant, he has not only lost his job but has become unfit for the Merchant Navy.

Also See: Motor Accident Compensations – Legal Queries

That the Motor Accident Claims Tribunal, Karnal awarded compensation of Rs.6,60,000/- along with interest and when the aggrieved appellant approached the High Court for enhancement of compensation, the Court enhanced the compensation by Rs.2,20,000/- i.e. a total compensation of Rs.8,80,000/- along with interest.

Hence, the instant appeal was preferred by the Appellant in the Supreme Court for further enhancement of compensation.

Also read Motor Vehicles Accident Compensation under the MV Act

Supreme Court’s Verdict

The Court made reference to the case of Raj Kumar v. Ajay Kumar [(2011) 1 SCC 343] to hold that in the case of permanent disability, the compensation is usually awarded under the following heads:

  • Pecuniary damages (Special Damages):
    • Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure;
    • Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising:
      • Loss of earning during the period of treatment;
      • Loss of future earnings on account of permanent disability.
    • Future medical expenses.
    • Non-pecuniary damages (General Damages)
    • Damages for pain, suffering and trauma as a consequence of the injuries;
    • Loss of amenities (and/or loss of prospects of marriage);
    • Loss of expectation of life (shortening of normal longevity)
  • That having regard to the afore-mentioned material on record and keeping in mind that the future of the appellant has become bleak, so also his marriage prospects are reduced to greater extent, in our considered opinion, the compensation awarded to the appellant needs to be enhanced to certain extent.
  • In view of the facts and circumstances of the case, the Supreme Court awarded Rs.10,00,000/- on account of the expenses relating to treatment, hospitalization, medicines etc, loss of earnings during the course of treatment and loss of future earnings on account of permanent disability and also Rs.3,00,000/- for future medical expenses.
  • The Court further awarded Rs.3,00,000/-towards pain, agony and trauma as a consequence of injuries, and Rs.3,00,000/-towards loss of amenities (including loss of prospects of marriage) and Rs.3,00,000/- towards loss of expectation of life.
  • Thus, the appellant in total was awarded a compensation of Rs.22,00,000/- instead of Rs.8,80,000/- awarded by the High Court, along with uniform rate of interest @ 8% p.a. from the date of filing of the claim petition before the Motor Accident Claims Tribunal till its realization.

Also Read : MACT – Motor Accident Claims Tribunal – FAQ