[Motor Accident Claims] Position of claimant after accident essential factor to determine compensation: Supreme Court

The Supreme Court on Friday observed that in a claim for motor accident, the amount of compensation to be awarded under the heads of pain, suffering, loss of amenities and happiness cannot be calculated based on a straitjacket formula [Sri Benson George v. Reliance General Insurance Company Limited and Another]..A Division Bench of Justices MR Shah and BV Nagarathna noted that the same shall depend upon various relevant factors, including the position of the claimant after the accident. "The pain, suffering and trauma suffered by the claimant cannot be compensated in terms of money ... the amount of compensation to be awarded under the heads, pain and suffering and loss of amenities and happiness, there cannot be a straight jacket formula," the Bench observed.Loss of amenities and happiness suffered by the claimant and his family members also depend upon various factors, including the position of the claimant post-accident and whether, he is in a position to enjoy life and/or happiness which he was enjoying prior to the accident, the judgment said. To what extent the claimant has lost the amenities in life and the happiness will depend on the facts of each case, the Bench added.The Court was hearing an appeal assailing an order of the Karnataka High Court, with the prayer to enhance the amount of compensation..BackgroundIn 2013, the claimant aged 29, had sustained grievous brain injuries after suffering a vehicular accident. He underwent a brain surgery but remained in a state of coma even after being discharged from the hospital.The claimant through his mother had filed a claim petition before the Motor Accident Claims Tribunal (MACT) which awarded ₹94,37,300 at the rate of 9 per cent per annum from the date of the petition till realisation, as compensation under different heads, namely pain and sufferings, loss of future amenities and happiness etc.Aggrieved, both the insurance company and the claimant moved the High Court, which had partly allowed the appeal preferred by the claimant and has enhanced the amount of compensation from ₹94,37,300 to ₹1,24,94,333 at the rate of 6 per cent per annum under the above-mentioned heads.Aggrieved, the claimant preferred the present appeal seeking enhancement in the amount of compensation under the heads of pain and suffering and loss of future amenities and happiness..It was the case of the claimant that even though he had sustained grievous brain injuries, had been hospitalized for around 5 months, had undergone three major brain operations and still persists in coma, the High Court had only awarded ₹2 lakh under 'pain and suffering,.The claimant further submitted the vehicular accident had resulted in 100 per cent disability, due to which the claimant will have to live a miserable life till his death. The High Court had, therefore, erred in awarding only ₹1 lakh under the head 'loss of future amenities and happiness'.On the other hand, relying on Raj Kumar v. Ajay Kumar and Another (2011), the insurance company argued that when compensation is awarded by treating the loss of future earning capacity as 100 per cent, 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 those heads..Findings of the Supreme CourtThe apex court took the view that considering that the claimant was under hospitalisation for a long time and under cmedical treatment and that the claimant had also undergone multiple surgeries, awarding of compensation of ₹2 lakh under the heads of pain and suffering by the High Court was not reasonable.It, therefore, enhanced the same to ₹10 lakh. "In the facts and circumstances of the case due to the prolonged hospitalization and the multiple brain injuries sustained by the claimant and that he is still in coma and is bedridden, we are of the opinion that if the amount of compensation under the head of pain, shock and suffering is enhanced to Rs.10 lakh it can be said to be a reasonable amount under the head pain, shock and suffering," the Court ruled.The top court also held that the compensation awarded under the head loss of amenities and happiness was also on lower side.It was, therefore, enhanced the same to ₹10 lakh."In the facts and circumstances of the case, we are of the opinion that if the amount of compensation under the head loss of amenities and happiness is enhanced to ₹10 lakh from ₹1,00,000 as awarded by the High Court.".Thus, it partly allowed the appeal and modified the amount of compensation by increasing it to ₹1,41,94,333, with interest at the rate of 6 per cent per annum..Advocate-on-Record Karunakar Mahalik appeared on behalf of the appellant.Advocate-on-Record Prerna Mehta appeared on behalf of the respondent..[Read Judgment]

[Motor Accident Claims] Position of claimant after accident essential factor to determine compensation: Supreme Court

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