SC revises compensation to over Rs 60 lakh to accident victim kin

New Delhi: The Supreme Court has enhanced the compensation in a two-decade-old motor accident case by awarding over Rs 60 lakh to the family of a 20-year-old youth who was left completely paraplegic and disabled after being run over by a car in 2001.

Sharad Singh, a 20-year-old final-year B Com student, eventually succumbed to illness in 2021 after two decades of immobility. His mother, acting as his legal representative, pursued the appeal before the apex court.

A bench comprising Justices K Vinod Chandran and N V Anjaria, allowed the plea of his mother.

The victim sustained a fracture of the cervical vertebrae (C4-C5) after a car, driven rashly and negligently, hit the motorcycle on which he was riding pillion.

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The accident left him paraplegic with 100 percent permanent disability, confining him to bed for the rest of his life.

“The aspirations of the young man were shattered by the accident which left him paraplegic and fighting for breath, which also prompted the parents to relocate to another part of the country. We are of the opinion that even if he had not obtained the certificate as a Chartered Accountant, upon graduation, he could have been employed as an Accountant, who would have, on any reasonable estimate, received an amount of Rs.5,000/- as monthly income in the year 2001, if the minimum wages prescribed for a skilled worker was Rs.3,352,” the bench said.

One of the major issues before the bench was the reimbursement of medical expenses.

The insurance firm contested bills amounting to several lakhs, arguing that some predated the High Court appeal’s disposal and others were from hospitals outside Delhi, the victim’s permanent residence.

Rejecting the contention, Justice Chandaran, writing the judgement, said the insurer, with offices across India, could not evade verification.

The court accepted the family’s explanation that the victim had to be shifted to Goa due to Delhi’s adverse climatic conditions, which aggravated his recurring pneumonia.

Following verification, the insurance firm admitted medical bills worth Rs 21 lakh as genuine.

After accounting for Rs 1 lakh already granted by the High Court, the apex court directed an additional payment of Rs 20 lakh towards medical expenses incurred between 2001 and 2021. On the issue of loss of income, the Motor Accident Tribunal had originally pegged the victim’s monthly income at Rs 3,339.

The Delhi High Court increased it to Rs 3,352, citing the absence of a professional qualification at the time of the accident.

The top court disagreed and referred to the victim’s strong academic prospects.

While cautious not to assume chartered accountant-level earnings, the bench observed that even as a graduate he could reasonably have earned at least Rs 5,000 per month in 2001, compared to the skilled worker wage of Rs 3,352.

Referring to the judgement on the issue, the bench factored in 40 per cent towards future prospects and said the total loss of income was at Rs 15.12 lakh.

It added Rs 14 lakh under heads such as attendant charges, loss of amenities, pain and suffering, loss of marriage prospects, and disfigurement, along with Rs 11.22 lakh in medical expenses.

It enhanced the total award to Rs 40.34 lakh with an interest at 9 percent per annum from the date of filing of the claim petition.

In addition, the bench ordered the insurance company to pay Rs 20 lakh towards medical expenses incurred by the parents during the victim’s bedridden years.

This amount will not attract interest if paid within four months, failing which it will carry 9 percent annual interest from the date of judgment.

The apex court modified the high court’s award of Rs 32.46 lakh, substantially increasing it to over Rs 60 lakh inclusive of future medical costs.

The bench directed that the entire amount be disbursed to the victim’s mother, the substituted appellant, within four months.

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