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Benson George vs. Reliance General Insurance Co. Ltd. & Anr.

Civil Appeal · 2022 INSC 235Decided 25 Feb 2022
Civil Appeal No. 1540 of 2022
M.R. Shah · B.V. Nagarathna

Background

The claimant, a 29-year-old Process Supervisor at Deutsche Bank earning about Rs. 4.59 lakhs a year, suffered grievous brain injuries in a road accident in January 2013, underwent multiple brain surgeries, and remained in a coma and bedridden for years afterward. The Motor Accident Claims Tribunal awarded him about Rs. 94.37 lakhs in compensation with 9% interest; on cross-appeals, the Karnataka High Court raised the total to about Rs. 1.24 crore but cut the interest rate to 6%, awarding only Rs. 2 lakhs for pain and suffering and Rs. 1 lakh for loss of amenities and happiness. The claimant appealed to the Supreme Court seeking a further enhancement of these two heads.

Decision Breakdown

The Supreme Court held that given the claimant's prolonged hospitalisation, multiple major surgeries, and permanent comatose, bedridden state, the High Court's awards of Rs. 2 lakhs for pain and suffering and Rs. 1 lakh for loss of amenities and happiness were unreasonably low. It rejected the insurer's argument (based on Raj Kumar v. Ajay Kumar and Lalan D. v. Oriental Insurance) that only a token amount should be awarded under these heads once 100% loss of future earning capacity is already compensated, holding there is no straitjacket formula and each case turns on its own facts. The Court enhanced pain-and-suffering compensation to Rs. 10 lakhs and loss-of-amenities compensation to Rs. 10 lakhs (bringing the total award to about Rs. 1.42 crore), while declining to disturb the High Court's reduction of interest to 6% per annum, and directed the enhanced amount to be deposited within four weeks and invested for the claimant's benefit.

Lesson Learnt

In cases of catastrophic, permanent injury (such as a lifelong coma), compensation for non-pecuniary heads like pain-and-suffering and loss of amenities is assessed on the specific facts of the victim's suffering, not capped by a rigid formula merely because future-earning-loss compensation was awarded at 100%. Courts will enhance clearly inadequate awards under these heads.

Official source (sci.gov.in)View Judgment (PDF)

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