The Division Bench of the Supreme Court consisting of Justice M.R. Shah and Justice B.V. Nagarathna opined that there is no straight jacket formula for amount of compensation to be awarded under the heads of pain, suffering, loss of amenities and happiness.
Facts
In a vehicular accident, the claimant sustained grievous brain injuries and underwent brain surgery. Though he was discharged, he remained in coma even till the claim petition was filed. At the relevant time the claimant was working as a Process Supervisor in Deutsche Bank and earning Rs.4,59,425/ p.a. under different heads. At the time of accident, he was aged 29 years. That the claimant through his next friend i.e., his mother filed a claim petition before the Motor Accident Claims Tribunal. The Learned Tribunal awarded Rs.94,37,300/ at the rate of 9% p.a. under different heads from the date of petition till realization.
Procedural History
Feeling aggrieved, the Insurance Company as well as the original claimant preferred appeals before the High Court. The High Court partly allowed the appeal preferred by the claimant and enhanced the amount of compensation from 94,37,300/ to Rs.1,24,94,333/ but at the rate of 6% p.a. under different heads. Feeling dissatisfied, the original claimant preferred the present appeal to enhance the amount of compensation.
Contentions Made
Appellant: He underwent three major brain operations and thereafter all throughout he is in coma, suffered 100% disability and is bedridden. So, that in the facts and circumstances of the case, the High Court has erred in awarding Rs.2,00,000/ only under the head pain and suffering. Therefore, it was prayed to enhance the amount of compensation under the head pain and suffering.
Respondent: When compensation is awarded by treating the loss of future earning capacity as 100% the need to award compensation separately under the head of loss of amenities or loss of expectation of life may disappear and as a result, only a token or nominal amount may have to be awarded under the head of loss of amenities or loss of expectation of life, as otherwise there may be a duplication in the award of compensation. High Court has not committed any error in reducing the interest from 9% p.a. to 6% p.a.
Observations of the Court
The Bench referred to various judgments by the Apex Court and observed that:
“Considering the prolonged hospitalization and medical treatment and that the claimant underwent multiple surgeries, we are of the opinion that the High Court has erred in awarding Rs.2,00,000/ only under the head pain and suffering… we are of the opinion that Rs.10,00,000/ (Rupees Ten Lakhs) can be said to be a reasonable amount under the head pain, shock and suffering… Similarly, the amount of Rs.1,00,000/ awarded by the High Court under the head loss of amenities and happiness can also be said to be on lower side… we are of the opinion that Rs.10,00,000/ (Rupees Ten Lakhs) from that of Rs.1,00,000/ can be said to be a reasonable amount under the head loss of amenities and happiness.”
Judgment
The impugned judgment was modified, and it was held that the original claimant shall be entitled to a total sum of Rs.1,41,94,333/ with interest at the rate of 6% p.a. from the date of filing the claim petition till realization. The enhanced amount of compensation shall be deposited by the respondent before the learned Tribunal within a period of four weeks from order, failing which, it shall carry interest at the rate of 7.5% per annum. On such deposit, the Tribunal was directed to ensure that the amount of compensation is invested in long-term interest-bearing deposits in different Nationalized Banks or Post Office so that the amount of compensation can be used for the claimant and the same is not flittered away.
Case Name: Sri. Benson George vs Reliance General Insurance Co. Ltd.& Anr.
Citation: CIVIL APPEAL NO. 1540 OF 2022
Bench: Justice M.R. Shah, Justice B.V. Nagarathna
Decided on: 25th February 2022
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