Court Enhances MACT Award, Adopts Higher Notional Income and Directs Rs.20 Lakh for Future Medical Care

A bench of Justice K. Vinod Chandran and Justice N.V. Anjaria heard an appeal against the quantum of compensation awarded in a motor accident claim arising from a collision that rendered a 20‑year‑old pillion rider paraplegic. The appeal challenged the computation of loss of income and the claim for medical expenses, including bills produced from multiple States and sums incurred after the High Court's disposal.

The Court allowed the Civil Appeal with modifications, enhanced the award and issued payment directions. It found that the insurance company had verified medical bills to the tune of Rs.21 lakhs and accepted additional verified claims to arrive at an award of Rs.40,34,356/-, with interest at 9% per annum from the filing of the petition till realisation, to be paid to the substituted appellant within four months. The Court further directed the insurer to pay Rs.20 lakhs towards future medical expenses, "which shall not carry any interest if paid within a period of four months", failing which that sum would carry interest at 9% from the date of the judgment. The Court emphasised the victim's disability and prospects in fixing income and future prospects, noting that the victim "was completely bed ridden from 2001 till 2021 with 100% disability as certified by the All India Institute of Medical Sciences." The Court, in its reasoning, observed: Background The claimant, a 20‑year‑old final year B.Com. student and an aspirant Chartered Accountant, sustained a fracture at C4‑5 in a motor vehicle accident when the offending car, driven negligently by its owner, struck the motorcycle and ran over the pillion rider. The offending vehicle was insured. The Motor Accidents Claim Tribunal originally adopted minimum wages of Rs.3,339 per month and awarded a total of Rs.18,03,512/-. The High Court increased the loss of income to Rs.7,24,032/-, awarded Rs.14 lakhs under conventional heads (attendant charges, loss of amenities, pain and suffering, loss of marriage prospects and disfigurement) and medical expenses of Rs.11,22,356/-, arriving at Rs.32,46,388/-. The insurer contested the genuineness and verifiability of several medical bills, some originating from Goa and Bengaluru, and resisted post‑judgment claims. This Court directed the appellant to tabulate bills incurred after the High Court order and permitted verification; the insurer then admitted bills totalling Rs.21 lakhs as genuine. Applying the multiplier of 18 as laid down in National Insurance Co. Ltd. v. Pranay Sethi, the Court declined to adopt the minimum wage on the basis of education alone, held that a notional monthly income of Rs.5,000/- was reasonable for a graduate likely to obtain accounting employment, and applied 40% for future prospects. The Court computed loss of income at Rs.15,12,000/-, added conventional heads of Rs.14 lakhs and medical expenses of Rs.11,22,356/-, to reach Rs.40,34,356/-. The Civil Appeal stood allowed with these modifications. The Court directed payment of the enhanced award with interest @9% per annum from the date of filing till realisation within four months and directed that the Rs.20 lakh future medical expenses carry no interest if paid within four months, but attract 9% interest thereafter.

Case No.: Civil Appeal No. 8136 of 2024 Case Title: Sharad Singh (Dead) Through LR. …Appellant Versus H. D. Narang & Anr. …Respondents Appearances: For the Petitioner(s): [Not indicated in the judgment text] For the Respondent(s): [Not indicated in the judgment text]