SUPREME COURT ENHANCES COMPENSATION FOR MINOR ACCIDENT VICTIM

Introduction:

The Hon’ble Supreme Court in the matter of Miss Rushi @ Ruchi Thapa vs. M/s. Oriental Insurance Co. Ltd. and Another, vide Order dated 05.11.2024, held that the appellant, a minor who sustained a 75% permanent disability due to a road accident, was entitled to enhanced compensation. The judgment was delivered by a Division Bench headed by Justice Sanjay Kumar and Sanjiv Khanna.

Facts of the Case:

The appellant, Miss Rushi @ Ruchi Thapa, suffered a severe accident on April 13, 2013, at the age of less than twelve years. She was traveling with her father when their vehicle was hit by a Max Pick-Up Van (Registration No. AS-01CC-3349), resulting in permanent disability (75%) due to Hemiparesis in her left limbs. Her father, Sri Dhan Bahadur Thapa, filed a compensation claim on her behalf under MAC Case No. 1431 of 2014 before the Motor Accident Claims Tribunal (MACT), Kamrup (Metro), Guwahati.

The MACT determined that the accident was caused due to the rash and negligent driving of the van’s driver, who had a valid license. The vehicle was insured by M/s. Oriental Insurance Co. Ltd. (Respondent No. 1).

The tribunal awarded compensation of ₹5,59,771/- with interest at 7.5% per annum. The disability percentage was reduced from 75% to 50%, considering potential recovery.

The compensation was increased to ₹18,97,371/- based on 75% disability and other heads of compensation like future earnings, pain, suffering, and loss of marriage prospects.

Dissatisfied with the High Court’s enhancement, the appellant approached the Supreme Court for further relief.

Issues:

1.  Was the compensation awarded by the Gauhati High Court adequate given the appellant’s disability and future needs?

2. Should the minimum wages for skilled labor be applied to calculate future loss of earnings instead of unskilled labor wages?

3. Whether additional compensation should be awarded for future medical treatment and lifelong attendant care?

Appellant’s Arguments:

a  The compensation awarded by the High Court was insufficient given the severity of the injury, which left the appellant with lifelong disability and dependency.

b The notional income should be based on skilled labor wages rather than unskilled labor since the appellant was a school-going child with potential future prospects.

c Claimed additional compensation for future medical expenses, attendant charges, and other heads, totaling to ₹71,80,000/-.

Respondents’ Arguments (Insurance Company):

a) The compensation awarded by the High Court was just and reasonable.

b) Suggested a token compensation between ₹4 to 5 lakh for attendant charges, rejecting higher claims without sufficient proof of future expenses.

c) Contested the enhancement of compensation by citing the bills produced by the appellant for medical expenses, which were limited to ₹84,771/-.

Analysis by the Supreme Court:

The Supreme Court evaluated the evidence and previous judgments, particularly the Kajal v. Jagdish Chand [(2020) 4 SCC 413] case, which dealt with compensation for a child victim with 90% disability. The Court noted the High Court’s reliance on unskilled labor wages and revised it to skilled labor wages of ₹175 per day as per the Government of Assam’s notification.

The Supreme Court, in its analysis, significantly enhanced the compensation for the minor appellant who suffered 75% permanent disability due to a road accident. The Court noted that the lower courts had inadequately compensated her by using unskilled labor wages for calculating future loss of earnings.

Instead, the Supreme Court applied skilled labor wages, resulting in higher compensation for loss of future earnings and prospects. The Court also awarded ₹9 lakh for lifelong attendant care, increased the amount for future medical treatment to ₹5 lakh, and maintained amounts for pain, suffering, and loss of marriage prospects. The total compensation was raised to ₹34,07,771, ensuring a fair and comprehensive relief for the appellant’s lifelong challenges.

Judgment:

The Supreme Court enhanced the compensation to a total of ₹34,07,771/-, with interest at 7.5% per annum from the date of the claim petition’s filing until payment realization. The court instructed that the amount beyond ₹5,59,771/- should be deposited in fixed deposits, with monthly interest disbursed to the appellant or her father.

 

Breakdown of Compensation:

Head of Compensation	Amount (₹)
Loss of Future Earnings	9,45,000
Loss of Future Prospects (40%)	3,78,000
Attendant Charges for Lifetime	9,00,000
Pain, Suffering, and Loss of Amenities	3,00,000
Loss of Marriage Prospects	3,00,000
Future Medical Treatment	5,00,000
Medical and Hospitalization Expenses	84,771
Total	34,07,771

 

The appeal was partially allowed with no order as to costs.

 

 

ASHITA

ASSOCIATE

THE INDIAN LAWYER & ALLIED SERVICES.