Supreme Court Restores Tribunal Awards And Enhances Compensation For Permanently Disabled Passenger

A bench of Justices Atul S. Chandurkar and N. V. Anjaria heard appeals arising from a Division Bench judgment of the Madras High Court that reduced the quantum of compensation awarded by a Motor Accidents Claims Tribunal to a passenger who suffered 100% permanent disability. The appeals concerned whether the High Court was justified in diminishing amounts granted for future medical expenses, attendant charges and several other heads of loss.

The Court allowed the claimant’s appeal and set aside the High Court’s reductions, holding that the Tribunal’s awards for future medical expenses, attendant charges, loss of enjoyment and family pain deserved restoration or enhancement in light of the claimant’s age and the severity of injuries. The Court observed that the High Court’s restriction of future medical expenses to 25 years was unsustainable and emphasised the need to consider life expectancy in awarding long‑term heads. The Court, in its reasoning, observed: "We find that this reduction in the amount granted towards future medical expenses is totally unjustified. Though the figure of Rs. 3,000/- per month as granted appears to be reasonable, in our view restricting the amount of future medical expenses only for a period of 25 years appears to be unjustified. As noted above, the claimant was aged about 21 years when the accident took place. If the amount of future medical expenses is restricted only for a further duration of 25 years, it would meet such expenses till the claimant attains the age of 46 years. In our view, the amount granted towards future medical expenses deserves to be enhanced keeping in view the average life expectancy. Taking an overall view of the matter, an amount of Rs. 15 lacs towards future medical expenses would meet the ends of justice. Part of the said amount if invested by the claimant on its receipt would earn interest and would enable the claimant to tide over future expenses in the latter part of his life. Accordingly, the amount of compensation granted towards future medical expenses stands enhanced to Rs. 15 lacs." The Court also noted that "The grant of compensation for loss of future income is a distinct head from the one under which compensation is granted for permanent disability."

Background The claimant, aged about 21 and pursuing a degree, was injured in an Omni bus accident on 3 July 2011 and suffered grievous injuries resulting in 100% permanent physical disability and a vegetative state. He filed M.C.O.P. No. 962 of 2011 under Section 166 of the Motor Vehicles Act, 1988, seeking Rs. 1 crore. The Claims Tribunal found the bus owner and insurer liable and awarded Rs. 67,83,866 across heads including future medical expenses (Rs. 9 lakhs), attendant charges (Rs. 6 lakhs), permanent disability (Rs. 3 lakhs), loss of enjoyment (Rs. 3 lakhs) and family pain and suffering (Rs. 3 lakhs). Both the claimant and the insurer appealed to the Madras High Court. The Division Bench affirmed negligence and liability but reduced future medical expenses and attendant charges and set aside awards for permanent disability, loss of enjoyment and family pain, reducing the total to Rs. 48,83,866.

On appeal to the Supreme Court the claimant argued the reductions were unjustified, relying on precedents including K.S. Muralidhar v. R. Subbulakshmi and decisions of this Court on attendant and long‑term heads (Kajal v. Jagdish Chand; Benson George v. Reliance General Insurance). The insurer and owner supported the High Court’s trimming of amounts, submitting that evidence did not justify long‑term awards. The Supreme Court found the High Court erred in curtailing awards without adequate reasons, restored the Tribunal’s grants where appropriate and enhanced others to reflect the claimant’s youth and total disability: future medical expenses were raised to Rs. 15 lakhs, attendant charges to Rs. 10 lakhs, permanent disability to Rs. 5 lakhs, and the Tribunal’s Rs. 3 lakhs awards for loss of enjoyment and family pain were restored. The total compensation was fixed at Rs. 82,83,866 payable within four weeks with 7.5% per annum interest as directed by the Tribunal. The civil appeals were allowed and parties were left to bear their own costs.

Case Details: Case No.: CIVIL APPEAL NOS. 3132-3133 OF 2023 Case Title: KAVIN v. P. SREEMANI DEVI & ORS. Appearances: For the Petitioner(s): Ms. Harsha Tripathi, Advocate For the Respondent(s): Ms. Prerna Mehta, Advocate (for insurer); Mr. Nikhil Swami, Advocate (for owner)