Srinagar, Sep 25: The Jammu and Kashmir and Ladakh High Court has reduced the compensation awarded to a motor accident victim for pain, suffering and loss of amenities from Rs 5 lakh to Rs 50,000, holding that compensation must be fair and reasonable and correspond to the circumstances of the individual case.
Justice Rajesh Sekhri passed the judgment while partly allowing an appeal filed by Bajaj Allianz General Insurance Company against an award of the Motor Accident Claims Tribunal, Srinagar, in the case of Bajaj Allianz General Insurance Company versus Aijaz Ahmad Najar and others.
The case arose from a road accident involving a motorcycle and a Tavera vehicle. Two persons travelling on the motorcycle sustained injuries.
One of the motorcycle occupants, who was driving the vehicle, suffered 50 percent permanent disability, while Aijaz Ahmad Najar, who was riding pillion, was assessed to have suffered 5 percent disability.
The Motor Accident Claims Tribunal had awarded Rs 5 lakh each to the two claimants towards non-pecuniary damages for pain, suffering and trauma, besides interest at the rate of 9.5 percent per annum.
The insurance company challenged the award insofar as it related to the Rs 5 lakh compensation granted to Najar and the rate of interest.
The High Court observed that perfect compensation was difficult to achieve but said the guiding consideration for a tribunal should be to restore an accident victim, as far as money can reasonably do so, to the position occupied before the accident.
The court said compensation must be determined in a fair and reasonable manner and should reflect the actual circumstances and consequences of the injuries suffered.
The High Court noted that Najar’s assessed disability was 5 percent and that the evidence did not establish that the disability was permanent or that it adversely affected his livelihood.
The court also observed that the Tribunal had applied the same amount of Rs 5 lakh towards pain, suffering and loss of amenities for both claimants despite a substantial difference in the nature and extent of their disabilities.
The High Court consequently held that the compensation awarded to Najar was not justified in the circumstances of the case.
The court modified the award and reduced the non-pecuniary damages payable to Najar from Rs 5 lakh to Rs 50,000.
It also reduced the interest rate from 9.5 percent to 6 percent per annum, directing that the compensation be paid with interest from the date of filing of the claim petition until realization.
The judgment emphasized that compensation under the Motor Vehicles Act has to be “just and reasonable” and cannot be determined by applying an identical figure mechanically to claimants whose injuries and disabilities differ materially. [KNT]
