Page 49 - Insurance Times May 2022

SC: If accident victim disabled 100%, be lakh. The appellant has not only lost his childhood but also
adult life," it said.
liberal with damages
The bench calculated loss of income on the basis of minimum
Remarking that courts should take a liberal view in award-
wage prevailing in Karnataka in 2010 for skilled labour, which
ing compensation to victims who are left 100% disabled and
was Rs 3,700 per month, with 40% for future prospects.
also suffer mental disabilities after road accidents, the Su- "Thus, the compensation works out to be Rs 3,700 plus 40%,
preme Court extended its helping hand to one such child
which amounts to Rs 5180 per month. The multiplier of 18
and awarded Rs 50 lakh compensation with 7.5% interest
would be applicable in view of the age of the appellant. The
per annum. The total amount could come to about Rs 1
loss of future earnings due to the permanent disability for
crore as the accident took place in 12 years ago. life thus works out to be Rs 11,18,880," it said.
A bench of Justices Hemant Gupta and V Ramasubramanian
The court said out of the total amount, Rs1 0 lakh would be
said a child who suffers severe disability is to be compen-
disbursed to his father and the rest of the amount would be
sated also for the loss of marriage prospects and loss of invested in one or more fixed deposits receipts and the in-
income which he would have earned after attending ma- terest amount shall be payable to his guardian every month.
jority and that amount be decided on the basis of minimum
wage fixed by the state government for skilled labours.
Insurance Company Liable To Pay Com-
In this case, the child had met with a very serious accident
in 2010 when he was five years old. He was not able to move pensation Even When Driver Does Not
both his legs after the accident and had complete sensory Have Valid License: Madras High Court
loss in the legs, urinary incontinence and bowel constipa- The Madras High Court has recently held that when a claim
tion. He became bed-bed ridden and dependent on others. is presented under the Motor Vehicles Act, the insurance
Referring to SC's earlier verdict, the bench said, "...the company is liable to pay compensation even when the driver
courts or the tribunals assessing the compensation in a case of the vehicle was not possessing a valid driving license. It
of 100% disability, especially where there is mental disabil- added that amount may later be recovered from the owner
ity also, should take a liberal view of the matter when of the vehicle.
awarding the compensation".
The Madurai bench of Justice Teeka Raman made the above
Taking into account his medical condition, the bench en- observations on an application filed by the owner of the
hanced the compensation amount more than three times offending vehicle, Thanikodi againstthe order passed by the
from Rs 13.46 lakh awarded by the Karnataka HC, which Motor Accidents Claims Tribunal, Peiyakulam. The Tribunal
did not grant compensation on the count of loss of mar- had held that the owner of the vehicle was liable to pay
riage prospects and loss of future earnings due to disabil- compensation and exonerated the insurance company and
ity. The SC awarded Rs 49.93 lakh compensation, out of had awarded compensation.
which Rs 11.18 lakh was given for loss of future earnings
The original claimants are the legal heirs of the deceased.
and Rs 3 lakh for loss of marriage prospects. They had filed a claim petition before the Motor Accidents
"...In view of the physical condition, the appellant is entitled Claims Tribunal, Periyakulam. They claimed that the driver
to one attendant for the rest of his life though he may be had driven the tractor in a rash and negligent manner and
able to walk with the help of an assistant device. The de- without any signal, suddenly turned his vehicle thus hitting
vice also requires to be replaced every five years. There- the deceased who was riding a two-wheeler just behind the
fore, it is reasonable to award cost of two devices, i.e. Rs.10 tractor. T

The Insurance Times, May 2022 49