Sangam Lal's compensation increased to over Rs. 16 lakh, setting a new precedent for disability claims under the Motor Vehicles Act.
In a significant judgment, the Allahabad High Court has increased the compensation awarded to Sangam Lal, an accident victim who suffered severe injuries leading to the amputation of his right leg and partial amputation of toes on his left foot. The court's decision, delivered by Justice Sandeep Jain, raises Sangam Lal's compensation from Rs. 5,03,310 to Rs. 16,59,510, reflecting a more comprehensive consideration of his 100% functional disability and future prospects.
The case, which involves two First Appeals From Order (FAFO Nos. 892 and 697 of 2015), arose from a motor vehicle accident on March 29, 2009. The Motor Accident Claims Tribunal initially awarded Rs. 5,03,310, which both the claimant and the insurer, New India Assurance Co. Ltd., appealed.
Central to the court's enhanced compensation was the tribunal's error in assessing Sangam Lal's functional disability at 80%, despite evidence of 100% disability due to the amputations. The court emphasized that compensation must be calculated considering the full extent of functional disability, future prospects, and the prevailing minimum wages for skilled workmen.
Justice Jain referenced several Supreme Court precedents, highlighting the need for a nuanced approach to assessing economic loss and earning capacity in cases of severe permanent disability. The judgment also acknowledged that Sangam Lal, being only 16 at the time of the accident, should benefit from future prospects compensation at 50%, as stipulated by Rule 220-A of the UP Motor Vehicle Rules, 1998.
In addition to the functional disability and future prospects, the court addressed the inadequacy of non-pecuniary damages initially awarded. Sangam Lal will now receive Rs. 1,00,000 for pain, suffering, and loss of amenities, and Rs. 50,000 for loss of marriage prospects, recognizing the broader impact of his injuries on his life.
The court's ruling sets a precedent for similar cases, ensuring that victims receive fair compensation that reflects their actual loss and future potential. The insurance company has been directed to pay the enhanced amount within two months, with adjustments for any prior payments.
Bottom Line:
Motor Vehicles Act - Determination of compensation in cases of permanent disability - Compensation must be calculated based on functional disability, future prospects, and minimum wages of skilled workmen prevailing at the time of the accident. Deduction for personal expenses is not applicable in cases of permanent disability.
Statutory provision(s): Motor Vehicles Act, 1988 Section 173, Rule 220-A of the UP Motor Vehicle Rules, 1998
Sangam Lal v. New India Assurance Co. Ltd., (Allahabad) : Law Finder Doc Id # 2836697
