[Motor Accident cases] No bar on awarding compensation higher than the amount claimed by victim: Bombay High Court

The Bombay High Court recently ruled that in motor accident claims cases, there is no bar on Motor Accident Claims Tribunal (MACT) or courts awarding compensation which is higher than the amount claimed by the accident survivor/ victim [Yogesh Subhash Panchal v. Mohd. Hussain Malik & connected appeal]. .“There is no embargo in awarding compensation more than that claimed by the claimant. Rather it is obligatory for the Tribunal and Court to award ‘just compensation’, even if it is in the excess of the amount claimed”, the High Court said.Single-judge Justice Anuja Prabhudessai, therefore, enhanced the compensation granted by a Motor Accident Claims Tribunal (MACT) to an accident survivor from 48.3 lakh to ₹64.8 lakh which was more than the amount claimed by him and and inclusive of the ‘no-fault liability’ component.Along with the interest, the survivor would get a compensation of more than ₹1.17 crores.The Court passed the order after noting that the survivor had become wheelchair bound for life and lost his earning capacity completely.The Court reasoned that paraplegia, which is a form of paralysis of lower body, has a devastating impact on social and financial well being of the victim and 100% loss of earning capacity.The judge also opined that monetary compensation, however high, cannot re-build life of the victim or reduce mental or physical trauma. “Paraplegia of the sole bread earner also puts infirm parents in a helpless situation. …It cannot restore the shattered dreams of the spouse, bring back lost childhood of the children or relieve the agony of the parents of seeing their child in a vegetative state,” the Court added..The Court directed the insurance company to deposit the balance amount, which comes to over ₹1 crore, in a nationalised bank within a period of four weeks from October 14.This was after the Court added the component of interest @7.5% per annum on a portion of the compensation amount from 2005 till date of realisation. The Court also separately added a component of 'future expenditure' in the compensation amount. .The petitioner, met with an accident in November 2004 and sustained multiple injuries resulting in 100% permanent disablement due to traumatic paraplegia. He incurred huge medical expenses and became dependent on others for his day to day chores at the age of 26 years.After the accident, he was also left unable to work and earn his livelihood. He filed an application under the Motor Vehicles Act claiming compensation of ₹45,00,000. The insurance company denied that accident was caused due to rash and negligent driving and denied its liability to pay the compensation. The Motor Accident Claims Tribunal allowed claim compensation of ₹48,38,543 with interest at 7.5% per annum from date of application till final realisation.Being aggrieved by the quantum of compensation, Panchal as well as the insurance company appealed to the High Court.Justice Prabhudessai deduced that Panchal had suffered a 100% loss of earning capacity. “The claimant, a young man of 26 years of age is wheelchair bound for life. …He is unable to enjoy amenities of life, which he would have otherwise enjoyed but for the tragic accidental injuries”, the Court noted. In such circumstances, the High Court deemed it fit to enhance the compensation awarded by the tribunal towards pain and suffering and loss of amenities. .[Read Order]