Supreme Court Restores Enhanced Disability Compensation in Motor Accident Case. High Court's Reduction in Disability Percentage Overturned; Tribunal's Award Reinstated.


CASE NOTE & SUMMARY

The Supreme Court, restored the decision of the Tribunal, which had awarded compensation based on a 25% disability to the appellant, Rahul, who sustained multiple fractures in a motor accident. The High Court of Karnataka had earlier reduced the disability assessment to 20%, leading to a decrease in the compensation amount. The Supreme Court found the High Court's reduction unjustified and reinstated the Tribunal's original compensation decision.

Background

  • Incident: Rahul sustained serious injuries in a motor accident on 27th January 2013 while riding as a pillion.
  • Injuries: Fractures in both forearms, requiring surgical intervention with plates and screws.
  • Tribunal's Decision: Awarded compensation based on a 25% disability, totaling Rs. 5,38,872/-.

High Court's Ruling

  • Appeal: The insurance company challenged the Tribunal’s award, leading to a reduction in the assessed disability to 20% by the High Court.
  • Outcome: The High Court reduced the compensation to Rs. 4,74,072/-.

Supreme Court's Analysis

  • Key Issue: Whether the High Court's reduction of the disability percentage from 25% to 20% was justified.
  • Supreme Court's Observation: The High Court's reduction lacked sufficient basis, particularly since the doctor who assessed the 50% disability was not discredited.

Final Judgment

  • Restoration: The Supreme Court set aside the High Court's judgment and restored the Tribunal’s decision.
  • Direction: The insurance company was ordered to deposit the full compensation as per the Tribunal's original judgment within four weeks.

Conclusion

  • Impact: The judgment underscores the importance of relying on credible medical assessments in determining compensation for disabilities resulting from accidents.

ISSUE OF CONSIDERATION

Rahul Versus National Insurance Company Ltd. and another

Citation: 2024 LawText (SC) (8) 92

Case Number: CIVIL APPEAL NO. 8614 OF 2024 (Arising out of SLP (C) No. 16897 of 2024) (Arising out of Diary No.38687 of 2019)

Date of Decision: 2024-08-09

Case Title: Rahul Versus National Insurance Company Ltd. and another

Before Judge: (Sudhanshu Dhulia J. & R. Mahadevan J.)

Appellant: Rahul

Respondent: National Insurance Company Ltd. and another