Summary
| Category | Data |
|---|---|
| Court | Supreme Court of India |
| Case Number | C.A. No.-008136-008136 – 2024 |
| Diary Number | 4439/2018 |
| Judge Name | HON’BLE MR. JUSTICE K. VINOD CHANDRAN |
| Bench | HON’BLE MR. JUSTICE K. VINOD CHANDRAN; HON’BLE MR. JUSTICE N.V. ANJARIA |
| Overrules / Affirms | Affirms Constitution Bench decision in National Insurance Company Limited vs. Pranay Sethi (2017) 16 SCC 680 |
| Questions of Law |
|
| Ratio Decidendi |
Where evidence shows that a victim possessed academic qualifications and realistic employment prospects exceeding minimum-wage schedules, courts may adopt a higher monthly income for loss of earning capacity, adding 40% for future prospects and applying an 18 multiplier as laid down in Pranay Sethi. An insurer with a national network cannot refuse to verify bona fide medical bills merely because they originate from outside the victim’s native state. Future medical expenses may be awarded as a separate head without interest if paid within a stipulated period. Awards carry interest at 9% per annum from filing until realization. |
| Judgments Relied Upon | National Insurance Company Limited vs. Pranay Sethi (2017) 16 SCC 680 |
| Logic / Jurisprudence / Authorities Relied Upon |
|
| Facts as Summarised by the Court | A 20-year-old pillion rider sustained C4-5 fracture and paraplegia in a negligent car-bike collision by an insured driver; appeal challenges only quantum of medical expenses and loss of income. |
Practical Impact
| Category | Impact |
|---|---|
| Follows | National Insurance Company Limited vs. Pranay Sethi (2017) 16 SCC 680 |
What’s New / What Lawyers Should Note
- Courts may adopt a monthly income figure above minimum-wage schedules when the victim’s qualifications and prospects justify it.
- A 40% future prospects uplift applies even if the victim lacked formal professional certification at the time of accident.
- An insurer with offices nationwide cannot object to verifying medical bills from other states.
- Future medical expenses can be awarded separately without interest if paid within the court-specified period.
- Interest at 9% per annum from filing until realisation applies to the enhanced compensation head.
Summary of Legal Reasoning
- The insurer’s objection to out-of-state medical bills was rejected since it has a national verification capacity.
- The Tribunal’s adoption of minimum-wage income was held inappropriate for a B.Com graduate en route to chartered accountancy.
- The Court fixed Rs. 5,000/month as pre-accident income, added 40% for future prospects, and applied an 18 multiplier under Pranay Sethi.
- Medical expenses totalling Rs. 20 lakhs were awarded for future treatment, payable within four months without interest.
- Interest at 9% per annum was confirmed from petition filing to realisation on the entire award.
Arguments by the Parties
Petitioner (Victim’s Mother):
- Many medical bills pre-High Court disposal were genuine and explained by relocation for climate reasons.
- Minimum-wage basis undervalues the victim’s academic and professional prospects.
Respondent (Insurance Company):
- Objected to verification of Goa and Bengaluru bills, claiming inability to authenticate.
- Argued that minimum wages for a skilled worker or graduate should apply.
Factual Background
A 20-year-old pillion rider suffered paraplegia after a negligent car driven by its insured owner collided with his motorcycle. The claimant, later represented by his mother, sought enhanced compensation for medical expenses incurred before and after the High Court order and for loss of future earnings. The High Court had increased the award but adopted a minimum-wage income and granted certain heads under conventional compensation.
Alert Indicators
- ✔ Precedent Followed – Affirms application of the 18 multiplier from Pranay Sethi.