Compensation for Damages under Motor Vehicles Act, depends upon the percent of harm caused to his/her

Falgu Mukati | Pravin Gandhi College of Law | 6th February 2020

Kajal vs Jagdish Chand & Ors, Civil Appeal NO. 735 OF 2020

Matter 

Kajal was a young 12-year-old girl. She used to lead a normal life as any other young girl. She played with her friends and attended school. However, unfortunately on 18th October, 2017, Kajal who was sitting on a tractor along with her parents was hit by a truck which was rashly driven. As a result of the accident Kajal suffered serious injuries which led to damage of her brain. After medical examination at the Post Graduate   Institute   of   Medical   Education   and   Research, Chandigarh. The report stated that since her brain was damaged, she was left with an I.Q. level of less than 20, her social age was that of a 9-month-old child. She had severe weakness in her four limbs, suffered from serious hysteria, and severe urinary incontinence. The High Court awarded a compensation of Rs 25,78,501 to Kajal; however, it was increased to Rs.62,27,000.  

Appellant’s Contention

• The compensation must be just and should be awarded taking into consideration the injuries suffered by the persons. 
• The compensation awarded should be neither assessed very conservatively, nor should be assessed in a very liberal manner. 
• The compensation awarded must be substantial to compensate the injure throughout his/her life. 
• It stated that the amount of Rs 1,38,501 for medical expenses was less and was thus increased to Rs 2,00,000. 
• The High Court and Trial Court fixed Rs 15,000 as annual income of the girl. However, it was alleged that the girl after growing up would have earned more than Rs 15,000. Thus Rs 81,412.80 per annum was fixed. 
• While the girl was admitted in the hospital for 51 days, her parents had suffered loss of wages, who attended to her in the hospital. Thus, Rs 51,000 was awarded to them for the loss of wages incurred.
• The girl will now require two attendants, 24×7, throughout her life. Thus, the amount of attendant for lifetime was increased to Rs 21,60,000, using the multiplier system. 
• In Mallikarjan v/s Divisional Manager, The National Insurance Company Limited and Ors, Rs 6,00,000 was awarded since there was a disability of 90 percent. The High Court in the case of Kajal awarded only Rs 3,00,000 when the disability was 100 percent. Thus, the compensation was increased to Rs 15,00,000. 
• The High Court had awarded only Rs 2,00,000 for future medical treatment, which was unjust. Thus, the amount was increased to Rs 5,00,000    

Respondent’s Contention 

• The respondent was asked to pay the compensation within 45 days. This was contrary to the guidelines laid down by the court in General Manager, Kerala State Road Transport Corporation, Trivandrum v/s Susamma Thomas & Ors, wherein it was stated that the compensation should be gradually released.

Held 

• The total amount of compensation was increased from Rs 25,78,501 to Rs 62,27,000. 
• The amount shall carry an interest at 7.5 percent from the date of filing of the claim petition till payment/ deposit of the amount.