Case Title: Sidram vs Divisional Manager United India Insurance Co. Ltd. |(SC) 968 | CA 8510 OF 2022 | 16 Nov 2022 |
Summary
The Supreme Court has stated that compensation for future prospects can be brought forth in accident cases involving severe injuries leading to permanent disability. However, the court has encountered High Courts and Motor Accident Claims Tribunals holding the opposite view. The court argued that this restrictive interpretation is illogical as it excludes the potential for the surviving victim to advance in life during accident cases, but allows for such potentialities in the event of the victim’s death. The tribunal increased the compensation granted to an accident victim who had sustained a 45% permanent disability.
The court noted that when evaluating motor vehicle compensation claims, the general principle is to restore the victim to a position comparable to their pre-accident state, with additional compensatory payments for lost amenities and other miscellaneous expenses. The court also noted that “just compensation” should encompass all elements necessary to restore the victim to a position comparable to that which existed prior to the accident. Severe injuries not only result in enduring physical impairments and disabilities but also often leave the victim with profound psychological and emotional trauma.
About the case
The claim for compensation for future prospects may be brought forth in accident cases that involve severe injuries leading to permanent disability, as stated by the Supreme Court. The bench stated that it has encountered High Courts and Motor Accident Claims Tribunals holding the opposite view. The court stated that such a restrictive interpretation is illogical because it completely excludes the potential for the surviving victim to advance in life during accident cases, but allows for such potentialities to be acknowledged in the event of the victim’s demise. The tribunal made this observation when increasing the compensation granted to an accident victim who had sustained a 45% permanent disability. The bench, upon recalculating the award from the High Court, increased the compensation from Rs. 9,26,800 to Rs. 21,78,600. The tribunal deliberated in its decision on the legal stance concerning the calculation of compensation in accident cases.
The court noted that when evaluating motor vehicle compensation claims, the general principle is to restore the victim to a position comparable to their pre-accident state, with additional compensatory payments for lost amenities and other miscellaneous expenses. The following observations were made by the court in its judgment: The phrase “Future Prospects”It is presently established in the legal profession that in situations involving permanent disablement caused by a motor vehicle accident, the plaintiff may also seek compensation for future prospects in addition to future income loss. It is not the case that the claimant is not entitled to compensation for future prospects in accident cases involving serious injuries resulting in permanent disability, as held by a number of orders of various tribunals and, regrettably, affirmed by various High Courts. Avoiding the potential for compensation to address future prospects in accident cases involving severe injuries leading to permanent disability is not warranted.
This restrictive interpretation is logically flawed as it completely excludes the potential for the surviving victim to advance in life after the accident, while permitting such future prospects in the event of the victim’s demise. “Just Compensation” “Just compensation” should comprise all elements necessary to restore the victim to a position comparable to that which existed prior to the accident. Although nothing, including material compensation, can completely erase the trauma, pain, and suffering experienced by a victim following a serious accident (or substitute for the loss of a loved one), monetary compensation serves as the legal mechanism through which society ensures a certain degree of restitution for the survivors and the victims who are forced to live with their losses. The victim is profoundly disturbed mentally and emotionally by severe injuries. It is imperative that courts bear in mind that severe injuries not only result in enduring physical impairments and disabilities, but also frequently leave the victim with profound psychological and emotional trauma.
Constantly bearing in mind, whenever a judge is entrusted with adjudicating compensation claims, the trauma that accompanies the victim being forced to live in a world that is diametrically opposed to the one into which he or she is born, as an invalid who is dependent to varying degrees on others and devoid of total personal choice or autonomy. The individual’s dignity, which is now acknowledged as an intrinsic element of the right to life under Article 21, is undermined by the severe limitations imposed by such injuries. As a result, the person is deprived of the fundamental right to a wholesome life, which they had previously enjoyed. The victim is abruptly transported from the realm of the able-bodied to that of the disabled, an environment that is inherently disconcerting and distressing.
When courts scrutinize and grant meager compensation, oblivious to these circumstances, the injured party is insulted. Case specifics Divisional Manager United India Insurance Co. Ltd. v. Sidram | 16 November 2022 | 2022 LiveLaw (SC) 968 | CA 8510 OF 2022 Justices J. B. Pardiwala and Surya Kant In behalf of the petitioners—Adv. Nanda Kumar K.B., Adv. Suraj Kaushik, Adv. Dharam Singh, Adv. Agam Sharma, Adv. Ms. Nandini Pandey, Adv. Ms. Akhila Wali, Adv. Mr. Shiva Swaroop—Adv. M/s. Nuli & Nuli, Area of Responsibility Regarding Mr. Maibam Nabaghanashyam Singh, Respondent, AOR Headnotes Motor Accident Compensation Claims: In addition to seeking compensation for future loss of income and prospects, the claimant may also seek amounts for future prospects in cases of permanent disablement resulting from a motor accident. The law concerning the determination of compensation was examined. It was stated that “just compensation” ought to encompass all factors that would restore the victim to a condition comparable to one prior to the accident. Courts should also keep in mind that severe injuries not only result in permanent physical disabilities and immobilizations, but also frequently leave the victim with profound psychological and emotional trauma.
