Personal Finance

Karnataka High Court Raises Accident Compensation To Rs 55 Lakh, Awards Rs 20 Lakh For Lifetime Caregiver

A woman left permanently disabled in a 2016 road accident will receive higher compensation after the court recognised her need for lifelong care and support

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Karnataka HC raises accident compensation to Rs 55 lakh Photo: AI generated
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Summary

Summary of this article

  • High Court raises compensation from Rs 11 lakh to Rs 55 lakh.

  • Woman awarded Rs 20 lakh for lifelong caregiver expenses.

  • Court treats earning capacity loss as 100 per cent.

The Karnataka High Court has increased the compensation awarded to a woman who was left permanently disabled in a road accident by five times, raising the amount from Rs 11 lakh to Rs 55 lakh. The court also granted Rs 20 lakh separately towards the cost of a caregiver for the next 50 years.

A Division Bench has ruled that the earlier amount awarded by the Motor Accident Claims Tribunal (MACT) was not sufficient considering the woman's medical condition and her lifelong dependence on others.

The court also directed the insurance company to deposit the enhanced compensation with 8 per cent interest within eight weeks. However, the separate amount of Rs 20 lakh awarded for caregiver expenses will not carry any interest.

Woman Unable To Live Independently

The accident took place in 2016 on NH-66. She suffered serious head injuries and underwent emergency surgery. She remained in hospital for several weeks and required repeated treatment after the accident.

Medical records showed that she has permanent disability of 82.50 per cent. Doctors also said that she would need regular medication, constant supervision and assistance in her daily activities because of severe memory and cognitive problems.

The MACT had earlier treated her functional disability as 40 per cent and awarded compensation on that basis. It had also granted only Rs 1 lakh towards future medical expenses and caregiver costs.

Loss Of Earning Capacity Treated As 100 Per Cent

The High Court said that physical disability and loss of earning capacity are not always the same. Referring to an earlier Supreme Court judgment, the Bench said courts must assess how an injury affects a person’s ability to earn a living.

After examining the evidence, the High Court found that the woman would not be able to return to work for the rest of her life. It also noted that she cannot manage her day-to-day activities without help and would require an attendant throughout her life.

Based on these findings, the court treated her loss of earning capacity as 100 per cent instead of 40 per cent. It also said that the Rs 1 lakh awarded earlier for future medical care and caregiver expenses was insufficient, and granted Rs 20 lakh exclusively towards the cost of a lifelong caregiver.

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