Motor Accident Case: Money Cannot Fix A Person’s Physical Frame, Says Bombay HC

The Bombay High Court recently stated that money cannot repair a disabled person’s physical frame while upholding the compensation of ₹3.40 lakh awarded to a man whose right arm was amputated after an accident.

A single bench of Justice Urmila Joshi-Phalke was hearing an appeal filed by United India Insurance Co. challenging an order of the Motor Accident Claims Tribunal (MACT) at Yavatmal in Maharashtra.

The bench reasoned that compensation paid to a person injured in an accident is intended to compensate for the inability to live a full life and earn as much as one did prior to the accident.

“He (Victim) is compensated for the loss which he suffers as a result of that injury. His loss is not the stiff parts of the body, it is inability to leave a full life, to enjoy those amenities which depend on freedom of movement and his inability to earn as much as he used to earn or could have earned. It is true that money cannot renew the physical frame which has been damaged, but the endeavour in awarding the compensation should be the just and reasonable compensation,” the bench noted.

In August 2009, MACT granted the victim 3,40,768 with 9% annual interest.

In 1991, when Toufic Ahemed was a travelling in the car, it crashed into a tree, leaving him with serious injuries. The car’s driver passed away.

Ahemed’s right leg had to be amputated below the knee, leaving him permanently 70% disabled.

The MACT awarded the compensation to the victim to be paid by the insurance company.

The company then moved the High Court challenging the order.

The company argued that because Ahemed did not have a valid driver’s license, as required by the insurance policy, it had limited liability and requested that the case be dismissed.

The single bench, however, noted that the insurance policy made no mention of the limited liability being covered.

The court then dismissed the appeal because the terms and conditions of the insurance policy under the heading of limits of liability cover the limit of liability in respect of any accident under the Motor Vehicles Act.