#compensation quantum

The Punjab & Haryana High Court nearly doubled compensation for a 23-year-old engineer's death to ₹22.27 lakh, applying the Pranay Sethi formula with a 40% future-prospects addition and an 18-year multiplier. It also barred the insurer's recovery claim, ruling that an out-of-state driving licence cannot be presumed invalid without proof of policy breach.

The Supreme Court set the quantum of loss of consortium at Rs 48,400 per claimant and ordered a 10 % uplift every three years in motor accident compensation, while expanding the definition of ‘legal representative’ under the Motor Vehicles Act. This raises compensation for families of accident victims and clarifies who may claim on behalf of the deceased.

The West Bengal State Consumer Commission ruled that compensation for deficiency in service must be proportionate to the actual claim amount. In this case, an award of Rs.2 lakh for a Rs.9,683 deficiency was deemed excessive and reduced, reinforcing that punitive damages cannot exceed the harm suffered. This sets a precedent for rationalizing compensation in consumer disputes under the Consumer Protection Act.

The Andhra Pradesh High Court affirmed a Rs. 15.63 lakh compensation award for a medical aspirant injured in a road accident, emphasizing that tribunals' quantum awards under Section 166 of the Motor Vehicles Act cannot be overturned without substantive evidence of negligence or error. The ruling reinforces the burden of proof on appellants challenging compensation amounts, impacting future motor accident claims and appeals.

NCDRC sets a key precedent: compensation in medical negligence cases must be proportionate to the proven deficiency, not serve punitive purposes. The ruling clarifies the burden of proof and limits on award enhancement, impacting hospitals, patients, and consumer forums.