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Motor Accident Compensation LawSupreme Court of India

S. Thangaraj v. National Insurance Co. Ltd.

Civil Appeal · 2018 INSC 208Decided 6 Mar 2018
Civil Appeal No. 3152 of 2017
Chief Justice Dipak Misra · Justice A.M. Khanwilkar · Dr. Justice D.Y. Chandrachud

Background

The appellant, a 26-year-old load man working for a building contractor, was riding pillion on a motorcycle in 2004 when a lorry crashed into it, leaving him with a fractured spinal cord, right leg, and right hip, and total loss of sensation and movement below the abdomen. The Motor Accident Claims Tribunal assessed his disability at 70% and awarded about Rs. 11.27 lakh with 12% annual interest, but the High Court, while keeping the compensation amount, reduced the interest rate to 7.5% per annum, prompting the claimant's appeal.

Decision Breakdown

The Supreme Court held that the Tribunal's 70% disability assessment understated the real impact, since complete loss of sensation below the abdomen made it impossible for the appellant to ever resume work as a load man, meaning his disability should realistically be treated as total/complete for income-loss purposes. The Court rejected the insurer's argument that the claimant had conceded the compensation amount was fair, clarifying that counsel's earlier statement addressed a different, narrower point. It restored the amount the Tribunal had controversially deducted (rounding it up to Rs. 3,00,000 extra) and fixed interest at 9% per annum (between the Tribunal's 12% and the High Court's 7.5%), directing the insurer to pay the difference within eight weeks.

Lesson Learnt

Compensation for permanent disability must reflect the claimant's real, practical ability to earn a livelihood in his actual occupation, not just a clinical percentage figure, and a general statement by counsel on one issue cannot be stretched into a binding concession on an unrelated point.

S. Thangaraj v. National Insurance Co. Ltd. – Legal Case Shots | LegalAware