Case Note & Summary
The New India Assurance Company Ltd. appealed against the award of the Motor Accident Claims Tribunal which granted total compensation of Rs.2,83,727/- to the claimant, including medical expenses of Rs.1,17,927/-. The sole issue was whether the Tribunal could award medical expenses exceeding Rs.15,000/- as prescribed under Section 163A read with Schedule II of the Motor Vehicles Act, 1988. The High Court held that the Tribunal exceeded its limit and reduced the medical expenses to Rs.15,000/-, thereby reducing the total compensation to Rs.1,80,800/-. The claimant's counsel argued that the Tribunal should have considered 40% permanent disability instead of 20%, but the court noted that no cross-objection was filed, so the objection could not be entertained. The appeal was partly allowed, and the Insurance Company was directed to deposit the balance amount within two weeks. The amount already deposited in court was permitted to be withdrawn by the claimant.
Headnote
A) Motor Vehicles Act - Section 163A - Medical Expenses Cap - Under Section 163A read with Schedule II of the Motor Vehicles Act, 1988, the maximum medical expenses that can be awarded is Rs.15,000. The Tribunal exceeded its limit by granting Rs.1,17,927/- towards medical expenses, which cannot be sustained. (Paras 2-4)
B) Motor Vehicles Act - Cross-Objection - Enhancement of Compensation - A claimant cannot raise objection regarding inadequate compensation at the appellate stage without filing a cross-objection or appeal. The Tribunal granted disability compensation at 20% despite a 40% disability certificate, but no cross-objection was filed, so the objection cannot be entertained. (Para 3)
Issue of Consideration
Whether the Motor Accident Claims Tribunal can award medical expenses exceeding Rs.15,000 under Section 163A read with Schedule II of the Motor Vehicles Act, 1988.
Final Decision
Appeal partly allowed. Total compensation reduced from Rs.2,83,727/- to Rs.1,80,800/-. Claimant entitled to interest at 7.5% per annum from date of disability certificate (15-7-2010) till realization. Appellant to deposit balance amount within two weeks. Amount already deposited in court (Rs.1,32,329/-) permitted to be withdrawn by claimant.
Law Points
- Medical expenses under Section 163A MV Act are capped at Rs.15
- 000 as per Schedule II
- no cross-objection can be entertained at appellate stage if not filed
Case Details
2013 LawText (BOM) (03) 109
First Appeal No.1137 of 2012
Ms. Anita Singh for appellant, Shri S. R. Deshpande for respondent No.1
The New India Assurance Company Ltd.
Prabhakar Marotrao Ghagare, Sudhir V. Chatap, Rajendra Meshram
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Nature of Litigation
First appeal against award of Motor Accident Claims Tribunal
Remedy Sought
Appellant Insurance Company sought reduction of medical expenses awarded by Tribunal
Filing Reason
Tribunal awarded medical expenses of Rs.1,17,927/- which exceeded the limit of Rs.15,000/- under Section 163A MV Act
Previous Decisions
Motor Accident Claims Tribunal granted total compensation of Rs.2,83,727/- including medical expenses of Rs.1,17,927/-
Issues
Whether the Tribunal can award medical expenses exceeding Rs.15,000/- under Section 163A read with Schedule II of the Motor Vehicles Act, 1988.
Submissions/Arguments
Appellant: Medical expenses awarded by Tribunal exceed the limit of Rs.15,000/- prescribed under Section 163A read with Schedule II of the MV Act.
Respondent/Claimant: Tribunal should have considered 40% permanent disability instead of 20% for compensation.
Ratio Decidendi
Under Section 163A read with Schedule II of the Motor Vehicles Act, 1988, the maximum medical expenses that can be awarded is Rs.15,000/-. Any amount awarded beyond this limit is unsustainable.
Judgment Excerpts
The only question raised and involved in the present case is as to whether the Tribunal exceeds the limit by awarding the amount more than to Rs.15,000/- towards the medical expenses as prescribed under Section 163A r/w Sch. II of the Motor Vehicles Act, 1988.
The claimant would be entitled for medical expenses only to the extent of Rs.15,000/-.
In the result, this appeal is partly allowed. The claimant will be entitled for total compensation of Rs.1,80,800/- instead of Rs.2,83,727/- granted by the Motor Accident Claims Tribunal along with interest @ 7.5% per annum from the date of filing of disability certificate on 15-7-2010 till the realization of the entire amount.
Procedural History
The Motor Accident Claims Tribunal awarded compensation of Rs.2,83,727/- to the claimant. The Insurance Company appealed to the High Court challenging the medical expenses component. The High Court heard the appeal and delivered judgment on 7-3-2013.
Acts & Sections
- Motor Vehicles Act, 1988: Section 163A, Schedule II
