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The Supreme Court on Friday held that compensation in motor accident claims under the heads of pain and suffering, loss of amenities and happiness, cannot be calculated under a straight jacket formula. Court said, “It depends upon the facts and circumstances of each case and it varies from person to person who has suffered due to the accident. "

The bench of Justices MR Shah and BV Nagarathna observed, 

"So far as awarding compensation on the head of pain, shock and suffering is concerned, multiple factors are required to be considered namely, prolonged hospitalization; the grievous injuries sustained; the operations underwent and the consequent pain, discomfort and suffering.”

Similarly, Court held that loss of amenities and happiness suffered by the claimant and his family members would depend upon various factors, including the position of the claimant post-­accident and whether he is in a position to enjoy life and/or happiness which he was enjoying prior to the accident. 

Seeking enhancement of the amount of compensation, one Sri. Benson George, through his mother, had approached the Supreme Court against an order of the Karnataka High Court.

George was in a vehicular accident in 2013 sustaining grievous brain injuries. He had to undergo brain surgery and after being discharged from the hospital, he remained in a coma till the claim petition was filed. At that time, 29-year-old George was working as a Process Supervisor in Deutsche Bank and was earning rupees 4,59,425 per annum.

Following the accident, George's mother filed a claim petition before the Motor Accident Claims Tribunal which awarded rupees 94,37,300 as compensation. Dealing with the appeal against tribunal's decision, the High Court partly allowed it and enhanced the amount of compensation from rupees 94,37,300 to 1,24,94,333 under different heads.

Being aggrieved with high court's decision too, George's counsel before the top court submitted that in the facts and circumstances of the case the high court has committed a grave error in awarding Rs. 2,00,000 only under the head pain and suffering and Rs.1,00,000/ only under the head of loss of future amenities and happiness.

Upon perusal of the facts and circumstances of the case, the Apex Court opined that when the claimant was in coma even after a period of eight long years and was to be permanently bedridden during his entire life,  the amount of compensation awarded under the head loss of amenities and happiness was unreasonable and meager.

Therefore, considering George's prolonged hospitalization and medical treatment and the fact that he underwent multiple surgeries, the top court was of the opinion that the high court had erred in awarding Rs.2,00,000 under the head pain and suffering.  

“The pain, suffering and trauma suffered by the claimant cannot be compensated in terms of money….”, court said.

Accordingly, court ordered that the amount of compensation under the head of pain, shock and suffering be enhanced to ten lacs rupees and the amount under the head loss of amenities and happiness also be enhanced to the same amount.

Court modified high court’s order to the extent that "the original claimant was entitled to a total sum of Rs.1,41,94,333 with interest at the rate of 6% per annum from the date of filing the claim petition till realization." 

Moreover, the insurance company was also directed to deposit the difference amount before the Tribunal within a period of four weeks, failing which, the same will carry interest at the rate of 7.5% per annum.

Case Title: Sri. Benson George v. Reliance General Insurance Co. Ltd.& Anr.