On Wednesday, the Supreme Court stated that there is no justification for excluding the possibility of compensation for a survivor's future prospects in accident cases involving serious injuries resulting in permanent disablement.

A bench of Justices Surya Kant and J. B. Pardiwala increased the compensation awarded to a man who suffered permanent disability to the extent of 45 percent as a result of a road accident in July 2012 in Karnataka to Rs 21,78,600.

"It is now a well-settled position of law that even in cases of permanent disablement incurred as a result of a motor-accident, the claimant can seek, apart from compensation for future loss of income, amounts for future prospects as well. We have come across many orders of different tribunals and unfortunately affirmed by different High Courts, taking the view that the claimant is not entitled to compensation for future prospects in accident cases involving serious injuries resulting in permanent disablement. That is not a correct position of law. There is no justification to exclude the possibility of compensation for future prospects in accident cases involving serious injuries resulting in permanent disablement. Such a narrow reading is illogical because it denies altogether the possibility of the living victim progressing further in life in accident cases – and admits such possibility of future prospects, in case of the victim’s death", the court said.

The bench went on to say that the apex court's consistent principle in assessing motor vehicle compensation claims is to put the victim in the same position she or he was in before the accident, with other compensatory directions for loss of amenities and other payments. Referring to another Supreme Court decision, the bench stated that, as stated in that decision, courts should be mindful that a serious injury not only permanently imposes physical limitations and disabilities but also leaves the victim with deep mental and emotional scars, and directed the insurance company to pay the appellant the difference in compensation awarded.

"just compensation" should include all elements that would go to place the victim in as near a position as she or he was in, before the occurrence of the accident. Whilst no amount of money or other material compensation can erase the trauma, pain and suffering that a victim undergoes after a serious accident, (or replace the loss of a loved one), monetary compensation is the manner known to law, whereby society assures some measure of restitution to those who survive, and the victims who have to face their lives.

The bench discussed the legal position on determining compensation in accident cases in its decision. The principle followed in evaluating motor vehicle compensation claims is to place the victim in the same position she or he was in prior to the accident, with additional compensatory directions for loss of amenities and other payments.

Case details

Sidram vs Divisional Manager United India Insurance Co. Ltd.

CA 8510 OF 2022

Link: https://main.sci.gov.in/supremecourt/2018/26338/26338_2018_1_1502_39777_Judgement_16-Nov-2022.pdf