Motor Accident Leaves 5 Year Old Child Paralysed : Supreme Court Enhances Compensation To Rs 50 Lakh

The Supreme Court has enhanced the compensation payable to over Rupees 50 Lakhs in a motor accident case where a person has been rendered paralysed for life after he met with an accident as a 5 year old boy in 2010.

"The mental and physical loss cannot be computed in terms of money but there is no other way to compensate the victim except by payment of just compensation", the Bench observed while determining the payable compensation comes at 49,93,000/- with interest at 7.5% p.a.

A Bench comprising Justice Hemant Gupta and Justice V Ramasubramanian was considering an appeal filed by the victim challenging the order of the High Court which reduced the compensation to Rs.13,46,805 from the sum of Rs. 18,24,000/- awarded by the Motor Accident Claims Tribunal.

The bench has directed the amount of Rs.10,00,000 to be disbursed to the father of the appellant and rest of the amount to be invested in one or more Fixed Deposits Receipts so as to attract the maximum rate of interest.

"The interest amount shall be payable to the guardian of the appellant every month. It shall be open to the guardian, during the minority of the appellant, to seek orders for withdrawal of the amount on the basis of medical opinion, if any major medical expenses are required to be incurred", the Bench said

The Bench issued the direction taking into consideration appellant's medical certificate according to which he suffers from Advanced Reciprocating Gait Orthosis (ARGO) with bilateral elbow crutches, is unable to move his both legs and had complete sensory loss in the legs, urinary incontinence and bowel constipation and bed sore.

The Bench has enhanced the compensation taking into consideration and observing the following aspects:

• In view of the appellant's physical condition, he is entitled to one attendant for the rest of his life and he may be able to walk with the help of assistant device. However, considering that the device also requires to be replaced every 5 years, the Court found it reasonable to award cost of 2 devices i.e., Rs.10 lakhs.
• According to the Court, the appellant has not only lost his childhood but also adult life, therefore, loss of marriage prospects are also to be awarded.
• The Tribunal has rejected the claim of taxi expenses for the reason that the taxi driver has not been produced. It is impossible to produce the numerous taxi drivers. An award of 2 lakhs has been directed to be given as conveyance charges. "Still further, the Tribunal should have realized the condition of the child who had complete sensory loss in the legs. Therefore, if the parents of the child have taken him in a taxi, probably that was the only option available to them." the Bench said

• Since the minimum wages as on the date of accident is rounded off to Rs.3700 as per State of Karnataka's notification, the compensation is to be assessed on the basis of the said minimum wages on the assumption that the appellant would have been able to earn after attaining majority.
• According to the Court, in addition to the skilled minimum wages, the appellant would be also entitled to 40% for future prospects

Case Title: Master Ayush v The Branch Manager, Reliance General Insurance Co Ltd, CA 2205/2022

Citation : 2022 LiveLaw (SC) 330

Click here to read/download the judgment