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2026 Supreme(Online)(P&H) 83639

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Archana Puri, J
Iffco Tokio General Insurance Company – Appellant
Versus
Ashkara Jain – Respondent
FAO-2170-2013 | FAO-2970-2013



Advocates:
For the Appellants/Petitioners: Neeraj Khanna, Ravinder Arora, A.K. Chopra, Vidul Kapoor
For the Respondents: Rahul Noorie, Abhimanyu Singh

In motor accident cases involving minors with permanent total disability, 'just compensation' requires realistic, lifelong assessment of medical, attendant, and functional loss based on skilled wage rates and the multiplier method, rejecting arbitrary time-bound limitations on essential care and suffering.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 168 - Award of 'just compensation' in motor accident claims - Assessment involves a balance between reasonable recompense and fair, equitable principles - Determination of compensation for a minor sustaining 100% permanent disability in a persistent vegetative state requires recognizing the loss of life's amenities, future earnings, and continuous need for specialized, lifelong care - Multiplier method is the most realistic and reasonable approach for lump sum awards covering future expenses and attendant charges. (Paras 12, 17, 23, 29)

(B) Compensation - Assessment of loss - In cases of permanent disability of a minor, notional income should be based on minimum wages for a skilled workman, supplemented by future prospects - Limitation of medical expenses or pain and suffering to a specific period like two years is erroneous when the injury results in a life-altering, permanent vegetative condition. (Paras 20, 24, 25, 27)

(C) Appellate Jurisdiction - Power to enhance compensation - The court's duty is to ameliorate the misery of the claimant by awarding realistic compensation, ensuring the claimant does not face financial hardship for legitimate, lifelong requirements such as medical treatment, assisted living, and special dietary needs. (Paras 14, 23, 26)

Facts of the case:
The claimant, a nine-year-old student, suffered severe head injuries in a motor vehicle accident, resulting in 100% permanent disability and a persistent vegetative state. The motor accident claims tribunal initially awarded compensation, limiting future medical expenses and pain and suffering to a two-year period. Cross-appeals were filed by the insurance company and the claimant, the former seeking reduction and the latter seeking enhancement of the compensation amount.

Findings of Court:
The Court held that the tribunal's approach in limiting compensation heads to a two-year period was irrational. It recalibrated the compensation to include lifetime medical needs, attendant charges for specialized care, loss of future earnings based on skilled wage rates with future prospects, and enhanced damages for pain, suffering, and loss of future prospects or marital potential, calculated using the multiplier method.

Issues: Whether the compensation awarded by the tribunal was 'just' and whether the limitation of future medical expenses and pain/suffering to a two-year duration was legally and factually sustainable in the event of permanent, lifelong vegetative disability.

Ratio Decidendi: Compensation must be 'just', representing a genuine attempt to restore human dignity. For a minor in a permanent vegetative state, the assessment must account for lifelong realities, including skilled attendant care and recurring medical costs, rejecting sparse, time-bound limitations in favor of realistic, long-term projections aligned with the multiplier method.

Result: Appeal by the insurance company dismissed; appeal by the claimant allowed; compensation significantly enhanced.

****

ARCHANA PURI, J.

These are two appeals, filed by the insurance company as well as the claimant, to question the adequacy of the compensation awarded by learned Motor Accident Claims Tribunal vide Award dated 19.01.2013, to Ashkara Jain, who had sustained injuries, in a motor vehicular accident.

FAO-2170-2013 has been filed by the insurance company, thereby, seeking reduction of the compensation awarded by learned Tribunal. FAO-2970-2013 has been filed by the injured-claimant through her father, thereby, calling upon for the enhancement of the compensation.

For the convenience of discussion, the parties are referred to as making appearance before learned Tribunal.

Suffice to consider that the accident had taken place on 05.06.2011. On appraisal of the evidence, brought on record, learned Tribunal had held the accident to have been caused, due to rash and negligent driving of car bearing registration No.HR-26AS-8929, driven by respondent No.1-Braham Singh and the same resulted into causing of severe and grave injuries to Ashkara Jain, who was 9 years old and student of 4th standard, at the relevant time.

The claim petition was filed through Anand Jain, father of minor injured Akshara Jain.

As per the claim, the accident in question had caused devastating injuries to Ashkara Jain, as a result whereof, she had suffered 100% permanent disability. She is in vegetative state with chances of improvement, being remote. In the claim petition, the detail of the injuries and the extent of hospitalization as well as the kind of treatment extended to Ashkara Jain has been given, but however, the same shall be referred to in the later portion of the judgment.

Anand Jain, father of the injured, stepped into witness box as PW-6, who deposed about the age of the claimant and kind of injuries sustained by her, in the accident in question, as a result whereof, she became completely bed ridden and was in persistent vegetative state and was unable to perform any activity, such as, to see, open mouth, cry, talk, smile, move etc., as her brain is not functional. The intake of food is also through PEG tube. Further also, the father deposed about the kind of minimum movement of body of the claimant and there being no cohere between various parts of the body.

Even further, the doctors associated in the treatment, have been examined, besides the witnesses, who proved the bills of the medical expenses incurred and also the doctor, who was member of the board of doctors, who assessed the disability of Ashkara Jain.

On appraisal of the evidence in entirety and limiting ‘future medical expenses’ of the claimant for a period of two years and also assessing ‘pain and suffering’ only qua this period, learned Tribunal had awarded compensation to the extent of Rs.78,10,000/-, as detailed in tabular form in paragraph No.64 of the impugned Award, is reproduced as herein given:-

Head Amount of compensation
Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure Rs.40,00,000/-
Loss of future earning on account of permanent disability Rs.02,70,000/-
Future medical expenses for two years which can be further sought depending upon her health and longevity Rs.21,60,000/-
Damages for pain and sufferings for two years, which can be further sought depending upon her health and longevity Rs.4,80,000/-
Loss of amenities and loss of prospects of marriage Rs.6,00,000/-
Expectation of life Rs.3,00,000/-
Total Rs.78,10,000/-

The aforesaid ‘work on’ of the compensation, as per settled principle of law, do call for re-computation.

The Motor Vehicles Act is in the nature of social welfare legislation and its provisions make it clear that compensation should be ‘justly’ determined. A person therefore, is not only to be compensated for the injury suffered due to the accident, but on account of the loss suffered by him/her, as a consequence of the impact of the accident, more particularly, conside

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