Claimants' Socio-Economic Background Should Be Considered While Awarding Motor Accident Compensation In Permanent Disability Cases : Supreme Court

Socio-economic background of the claimants must be considered while awarding compensation in cases of permanent disability caused due to motor accidents, the Supreme Court observed in a judgment delivered today (9 December 2022).

The bench of Justices Krishna Murari and S. Ravindra Bhat observed thus while allowing appeal filed by a claimant seeking enhancement of motor accident compensation.

In this case the Motor Accident Claims Tribunal had awarded him a compensation of Rs.15,76,465/-. The Delhi High Court allowed the appeal enhancing the compensation to Rs.16,70,932/-.

In appeal, the Apex Court bench noted that the claimant had suffered permanent disability of 70% and has an amputated right lower limb amongst other injuries.

"The Appellant is not a salaried person but is self-employed who manages his business. For the Appellant to be able to augment his income, he is most definitely required to move around. The Appellant can also not drive on his own, which hinders his mobility further. This proves that the functional disability of the Appellant will severely impact his earning capacity, and the 35% functional disability calculated by the High Court is incorrect in the facts and circumstances of the case and in our view the loss of future earning capacity must be calculated at 60%.", the court said.

Allowing the appeal, the court held that the claimant/appellant is held entitled to be awarded compensation to the tune of Rs. 38,70,120/- along with 9% interest per annum from the date of making the application.

The bench observed that persons from marginalized backgrounds often face an additional layer of discrimination due to bodily disabilities.

"This is because persons from marginalized sections of the society already face severe discrimination due to a lack of social capital, and a new disability more often than not compounds to such discrimination. In such circumstances, to preserve the essence of justice, it becomes the duty of the Court to at the very least restore the claimant as best as possible to the position he was in before the occurrence of the disability, and to do so must award compensation in a liberal manner.", it said.

Case details

Mohd Sabeer @ Shabir Hussain vs Regional Manager UPSRTC | 2022 LiveLaw (SC) 1017 | CA 9070-9071 OF 2022 | 9 December 2022 | Justices Krishna Murari and S. Ravindra Bhat

For Petitioner(s) Mr. Manish Maini, Adv. Ms. Manjeet Chawla, AOR Mr. Tarun Sharma, Adv.

For Respondent(s) Ms. Garima Prashad, Sr. Adv. Mr. Nishit Agrawal, AOR Mr. Shrey Kapoor, Adv. Mr. Shadeb Khan, Adv. Ms. Kanishka Mittal, Adv. Mr. Akshit Kaushik, Adv.

Headnotes

Motor Accident Compensation Claims - Socio-economic background of the claimants must be considered while awarding compensation in cases of permanent disability - Persons from marginalized sections of the society already face severe discrimination due to a lack of social capital, and a new disability more often than not compounds to such discrimination. (Para 27-29)

Motor Accident Compensation Claims - Even if the income of the claimant had increased after the accident, it would not be enough grounds to disable him from claiming compensation for future prospect as the rise in income may be attributed to multiple other factors - In cases of permanent disablement caused by a motor accident, the claimant is entitled to not just future loss of income, but also future prospects - Just compensation" must be 10 interpreted in such a manner as to place the claimant in the same position as he was before the accident took place. (Para 18-20)

Click here to Read/Download Judgment