In a groundbreaking decision by the Supreme Court of India, a pivotal judgment was reached in the case revolving around compensation for permanent disability. The ruling addresses crucial aspects of justice and rights for individuals facing disabilities, ensuring fair compensation and support. Let’s delve into the details of this impactful legal precedent.
Facts
- The Appellant suffered grievous injuries including a head injury with traumatic subarachnoid hemorrhage.
- He underwent a hemi-craniotomy and suffered fractures of both jaw bones, resulting in disfiguration of his face.
- His left arm and leg were not functioning correctly due to the severe head injury.
- The Appellant had to undergo 5 surgeries and multiple hospitalizations, requiring follow-up treatment at PGI, Chandigarh.
- The MACT determined notional income as Rs. 6,000/- p.m. due to lack of evidence presented by the Appellant.
- The Appellant’s disability was assessed at 75% and deemed permanent, affecting his ability to work as a laborer, agricultural worker, or driver.
- The Appellant’s disability caused hemiplegia, severely impacting the left side of his body.
- The Appellant’s loss of future earnings computed to Rs. 32,40,000/- using a multiplier of 18.
- The compensation for loss of future earnings amounted to Rs. 9,72,000/- based on the Appellant’s income.
- The accident occurred due to the contributory negligence of another truck driver.
- The High Court awarded 50% of future prospects along with the total income of the Appellant set at Rs. 15,000/- p.m.
- The Appellant, permanently disabled, filed for enhancement of compensation to Rs. 1,75,61,000/- requiring a permanent attendant.
- Drivers of offending trucks found to not have valid driving licenses at the time of the accident.
- Owners and drivers of offending trucks held jointly and severally liable to pay compensation to the Appellant.
- Insurance Company absolved of the liability to pay compensation.
- Appellant filed FAO NO. 10473 of 2014 for enhancement of compensation.
- High Court directed re-assessment by Medical Board, determining 100% disability in earning capacity for the Appellant.
- High Court granted Future Prospects @50% to the income of the Appellant.
- High Court assessed functional disability of the Appellant as 100%.
- High Court partially allowed the FAO, enhancing compensation to Rs. 21,06,000/- due to 100% disability in earning capacity.
- Appellant awarded a total amount of Rs. 10,43,666/- with 7.5% interest p.a. for injuries suffered.
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Analysis
- The Appellant’s capacity to earn a living has been completely shattered for the rest of his life, making him fully dependent.
- Due to the permanent disability, he was deprived of getting married and having a normal family life since the age of 22.
- The High Court rightly assessed the Appellant’s functional disability at 100% in terms of loss of earning capacity.
- The insurance company was absolved of liability due to evidence of the offending drivers having invalid licenses.
- Compensation for loss of future earning capacity was awarded at Rs. 32,40,000.
- The Appellant requires assistance from an attendant throughout his life due to complete dependency.
- A lump sum of Rs. 7,50,000 was awarded for past hospitalizations, surgeries, and medical treatment.
- A further Rs. 10,00,000 was awarded for future medical expenses and attendant charges.
- Despite the awarded amounts, no money can fully compensate the Appellant due to his debilitated state.
- Compensation may vary based on the extent of disability and impact on the claimant’s employment, with examples provided.
- The awarded compensation for medical expenses was found to be highly insufficient.
- Principles laid down in Arvind Kumar Mishra v. New India Assurance Company Ltd. and Raj Kumar v. Ajay Kumar must be followed by all Tribunals and High Courts in determining compensation for accident victims who are disabled.
- Efforts should be made to award adequate compensation for physical injury, treatment as well as loss of amenities of life for both permanent and temporary disabilities.
- If the victim suffers permanent disability, compensation should be awarded not only for physical injury and treatment but also for loss of earning and inability to lead a normal life.
- Ascertainment of the effect of permanent disability on earning capacity involves three steps: determining the activities the claimant can and cannot do as a result of the disability.
- The fundamental criterion of ‘just compensation’ should be considered for loss of earning and inability to lead a normal life.
- In the case of a driver without a valid license, the insurance company can be directed to pay the victim and recover the amount from the owner of the offending vehicle.
- While determining compensation, the sufferings of the injured person including inability to lead a full life and incapacity to enjoy normal amenities should be considered.
- The approach of the tribunal or court in computing compensation should be broad-based.
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Decision
- The Civil Appeal is allowed and the Respondent – Insurance Company can recover the amount from the owners and drivers of the two offending trucks.
- The Respondent – Insurance Company must pay the enhanced amount of compensation to the Appellant within 12 weeks from the date of the judgment.
- A Demand Draft in the name of the Appellant should be made by the Respondent – Insurance Company for the Appellant’s care for the rest of his life.
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Case Title: PARMINDER SINGH Vs. NEW INDIA ASSURANCE COMPANY LTD.
Case Number: C.A. No.-005123-005123 / 2019
