ENHANCED COMPENSATION FOR CHILDHOOD ACCIDENT VICTIM WITH LIFELONG DISABILITY

by | Nov 9, 2024

ASPECTS DETAILS
Case Title Miss Rushi @ Ruchi Thapa vs. M/s. Oriental Insurance Co. Ltd. and Another
Introduction The case involves a minor, Rushi Thapa, who suffered severe disability due to an accident. The appellant, represented by her father, seeks compensation from Oriental Insurance Co. Ltd., insurer of the offending vehicle.
Factual Background In 2013, at age twelve, Rushi was in a severe accident resulting in 75% permanent disability. A Motor Accident Claims Tribunal (MACT) awarded compensation, later increased by the Gauhati High Court. Dissatisfied, the appellant approached the Supreme Court for further enhancement.
Legal Issues
  1. Determination of fair compensation for a minor with permanent disability.
  2. Calculation of notional income and application of multiplier.
  3. Consideration of future prospects and attendant charges.
  4. Determination of compensation for pain, suffering, and loss of marriage prospects.
Applicable Law
  • Motor Vehicles Act, 1988;
  • Precedent cases: Kajal vs. Jagdish Chand, Master Ayush vs. Reliance General Insurance.
Analysis The Supreme Court acknowledged the High Court’s enhancement but found it insufficient. Noting precedents, it accepted ₹5,250/month as notional income based on minimum skilled wages. Future prospects were added at 40%, and attendant charges were applied as per the multiplier method. The court awarded higher sums for future medical expenses and lifetime assistance.
Conclusion The Supreme Court raised the compensation to ₹34,07,771/- with 7.5% interest from the claim’s filing date. This amount is to be invested in fixed deposits for the appellant’s benefit, with monthly interest disbursement.
Current Scenario The appeal was partially allowed, enhancing compensation for the appellant’s lifelong disability and needs.

CASE SUMMARY In this case, Miss Rushi Thapa, injured in a childhood accident, sustained 75% permanent disability. Initially awarded compensation by MACT, later enhanced by the Gauhati High Court, her father sought further increase in the Supreme Court. The court raised the notional income assumption based on skilled labor rates and factored in future prospects and lifetime attendant charges. The compensation was recalculated to ₹34,07,771/-, including provision for future medical expenses. The court directed the amount to be invested in fixed deposits with interest disbursed monthly to aid the appellant’s welfare and maintenance.

“The Court’s primary duty is to ensure that compensation awarded is just and reasonable, taking into account the claimant’s lifelong needs and the debilitating impact of permanent disability.”

SOURCE- SUPREME COURT OF INDIA

READ ALSO – SC ON REINSTATEMENT AND CERTIFICATION COMPLIANCE IN PUBLIC SECTOR RECRUITMENT

Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and , a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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