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Supreme Court Of India(From : AIROnline 2019 P and H 2159)
Hon'ble Judge(s): J. K. Maheshwari, Rajesh Bindal , JJ
D.O.D : 18/03/2025
Appeal Allowed
(A) Motor Vehicles Act (59 of 1988) , S.168— Motor accident - Enhancement of compensation - Claimant was a young boy of 21 years of age at time of accident and had suffered quadriplegia which resulted in his 100% permanent disability - Claimant was learning work for becoming a Veterinary Doctor and was a good sportsman and had certain technical qualification to his credit - Assessment of income at less than minimum wage for unskilled worker was erroneous and hence reassessed - Multiplier of 18 was rightly applied by High Court - 40% of income was added towards future prospects which High Court had failed to add - Claimant being 100% disabled, was granted in lump sum , expenses towards attendant - Compensation towards special diet was enhanced - Considering significant impact of disability on life of claimant, amount towards pain and suffering was also enhanced - In addition, compensation was awarded for future medical expenses and for loss of marriage prospects - Compensation was also granted towards physiotherapy and medical expenses - Compensation was enhanced accordingly.
AIROnline 2019 P and H 2159-Reversed(Paras9101112)
(B) Motor Vehicles Act (59 of 1988) , S.168— Motor accident Compensation - Mode of payment - General practice followed by insurance companies, where compensation was not disputed, was to deposit same before the Tribunal - Instead of following that process, a direction can always be issued to transfer amount into bank accounts of claimants with intimation to Tribunal - Directions issued accordingly.
In cases pertaining to compensation awarded under the Motor Vehicles Act, the general practice followed by the insurance companies, where the compensation is not disputed, is to deposit the same before the Tribunal. Instead of following that process, a direction can always be issued to transfer the amount into the bank account(s) of the claimant(s) with intimation to the Tribunal For that purpose, the Tribunals at the initial stage of pleadings or at the stage of leading evidence may require the claimant(s) to furnish their bank account particulars to the Tribunal along with the requisite proof, so that at the stage of passing of the award the Tribunal may direct that the amount of compensation be transferred in the account of the claimant and if there are more than one then in their respective accounts. If there is no bank account, then they should be required to open the bank account either individually or jointly with family members only. It should also be mandated that, in case there is any change in the bank account particulars of the claimant(s) during the pendency of the claim petition they should update the same before the Tribunal. This should be ensured before passing of the final award. It may be ensured that the bank account should be in the name of the claimant(s) and if minor, through guardian(s) and in no case it should be a joint account with any person, who is not a family member. The transfer of the amount in the bank account, particulars of which have been furnished by the claimant(s), as mentioned in the award, shall be treated as satisfaction of the award. Intimation of compliance should be furnished to the Tribunal. In some cases, where the compensation is awarded to minor claimant(s) or otherwise, the Tribunal directs for keeping a certain percentage of the amount in a fixed deposit. Such a direction can always be issued in the award itself to be complied with by the concerned bank. When the amount is transferred by the Insurance Company in the account of the claimant(s), it shall be the responsibility of the bank to ensure that specified portion thereof is kept in the fixed deposit. Compliance is to be reported by the bank(s) to the Tribunal. It is also a fact that substantial amount of compensation in motor accident cases remains deposited in the Tribunal as the claimant(s) may not have approached the Tribunal for release thereof for various reasons. Delay for any reason in release of compensation in motor accident cases by the Tribunal to the claimant(s), where the amount is deposited in Tribunal, as directed, results in loss of interest to the claimant(s). In case the aforesaid process is followed, the gap would be bridged. The real object of the beneficial legislation, namely to compensate for the loss of earning member of the family or for the injuries suffered by the claimant(s), will be achieved and compensation can be disbursed without any delay. Directions were issued for bank transfer of amount of compensation in motor accident cases, but the Courts/Tribunals can always follow this process in any matter, whenever any amount is to be paid by one party to another, however, ensuring proper compliance.