Accident victim awarded Rs. 30 lakh compensation

If a student meets with a road accident and becomes permanently disabled, his/her potential future earnings must be taken into consideration by the Motor Accident Claims Tribunals and High Courts in order to award a just compensation. This was ruled by the Supreme Court while ordering a compensation of Rs. 30.93 lakh to a girl who lost both legs in an accident in 2005 when she was 16 years old.

A Bench of Justices Gyan Sudha Misra (since retired) and V. Gopala Gowda said, “Having regard to the undisputed fact that there has been inflation of money in the country since the occurrence of the accident, the same has to be taken into account by the tribunal. The fact that the appellant [in this case] was a brilliant student at the time of the accident should also be taken into consideration while awarding the compensation to her. Thus, the claimant-appellant, V. Mekala, is entitled to a total amount of Rs. 30.93 lakh as compensation with an interest at 9 per cent per annum.”

The appellant had secured first rank in her Class X exam. The court said the girl would have had a better future in terms of educational career and she could have got a suitable public or private employment. However, on account of the permanent disability she suffered due to the accident, that opportunity is lost to her. “Therefore, she is entitled to compensation under the heads ‘loss of income’ and ‘future prospects’,” the court said.

“In an accident, if a person loses a limb or eye or sustains an injury, the court, while computing damages for the loss of organs or physical injury, does not value a limb or eye in isolation, but values totality of the harm which the loss has entailed,” the Bench said.

In this case, the claimant had been awarded Rs. 6.46 lakh as compensation by the tribunal and the Madras High Court had enhanced it to Rs. 18.22 lakh. She filed the present appeal for further hike in compensation.

Allowing her appeal, the Bench directed the insurance company to deposit 50 per cent of the awarded amount with proportionate interest within four weeks in a nationalised bank and pay the balance 50 per cent within four weeks. The Bench sought compliance report from the insurance company within five weeks thereafter.