G. Vivek – Appellant Versus National Insurance Co. Ltd. & Anr. – Respondents

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1989 — Compensation — Personal Injury — Prosthesis Cost — High Court's Power to Reduce

Issues for determination

• Whether the High Court was justified in reducing the compensation awarded by the Tribunal for the cost and maintenance of prosthesis in a motor accident claim case.

Ratio decidendi

• In a motor accident claim case involving severe personal injury requiring prosthesis, the High Court is not justified in reducing the compensation for the cost and maintenance of prosthesis without employing proper reasoning, logic, or evidence, especially when the Tribunal's award is based on reasonable assessment.

Important points

• The Supreme Court enhanced the compensation for the cost and maintenance of prosthesis from Rs. 5 lakhs (awarded by High Court) to Rs. 26 lakhs, finding no rationale for the High Court's reduction.
• An additional sum of Rs. 1 lakh was awarded towards transport expenses and attendant fees for dressing, further increasing the total compensation.
• The Insurance Company was directed to release the enhanced compensation of Rs. 72 lakhs along with 7.5% interest per annum from the date of application (13.10.2011) within six weeks.