Court Applies Multiplier Method to Award Substantial Amount for Attendant, Nursing, Physiotherapy, and Future Medical Expenses; Interest Raised to 7%
In a landmark judgment delivered on November 6, 2026, the Delhi High Court significantly enhanced the compensation awarded to Mr. Parth Sareen, a 21-year-old claimant left in a vegetative state after a grievous motor vehicle accident near Shadipur Flyover, Delhi. The Court increased the total compensation from Rs. 1.30 crores to Rs. 4.05 crores, while raising the interest rate from 6% to 7% per annum.
The accident, which occurred in January 2024, involved a collision between a Honda City car and a Mahindra Bolero vehicle driven by the appellant insurance company's insured driver. Tragically, one occupant was declared brought dead, and Mr. Sareen sustained traumatic brain injuries rendering him completely bedridden with 100% functional disability.
The Motor Accident Claims Tribunal (MACT) had earlier awarded Rs. 1.30 crores considering medical expenses, loss of future earnings based on the claimant's last drawn salary of Rs. 30,271 per month, and attendant charges limited to 10 months. However, both parties filed cross-appeals - the insurance company seeking reduction and the claimant seeking enhancement of the award.
The Delhi High Court, presided over by Justice Anish Dayal, meticulously examined the case, affirming the MACT's correct assessment of 100% functional disability and the use of the last drawn salary as notional income despite the claimant's unemployment at the time of the accident. The Court rejected the insurance company's plea to deduct Rs. 400 towards Mediclaim from compensation, citing Supreme Court precedent that Mediclaim benefits are independent contractual reimbursements and do not diminish statutory compensation.
Crucially, the Court found the MACT erred in limiting attendant and nursing charges to just 10 months. Drawing upon authoritative Supreme Court precedents including Kajal v. Jagdish Chand and Sunil Kumar v. IFFCO Tokio General Insurance Company Limited, the Court emphasized that for lifelong vegetative state cases, attendant and nursing expenses must be calculated applying the multiplier method to reflect continuous care requirements realistically.
The Court awarded attendant charges based on minimum wages of a skilled worker at Rs. 21,917 per month with a multiplier of 18, totaling Rs. 47.34 lakhs. Nursing charges, requiring higher skill and involving complex care like tracheostomy management and Ryles tube feeding, were fixed at Rs. 30,000 per month with the same multiplier, amounting to Rs. 64.80 lakhs.
Additionally, future medical expenses were assessed at Rs. 50,000 per month, resulting in Rs. 1.08 crores after applying the multiplier. Physiotherapy charges, essential for ongoing treatment, were awarded Rs. 30,000 per month with multiplier, totaling Rs. 64.80 lakhs.
The Court also upheld the original awards for pain and suffering, mental shock, loss of amenities, loss of marriage prospects, and special diet and conveyance expenses, recognizing the profound non-pecuniary impacts of the injury.
On interest, the Court increased the rate to 7% per annum, reflecting current fixed deposit rates, and directed structured disbursal of the enhanced amount through lump sum release and Fixed Deposit Receipts to ensure financial security and sustained care for the claimant.
This judgment underscores the judiciary's commitment to delivering just and reasonable compensation reflecting the gravity of lifelong disabilities caused by motor vehicle accidents. It reiterates the multiplier method as the most realistic and equitable approach to quantify attendant and future medical expenses in cases of total functional disability.
Bottom Line:
Motor Vehicles Act - Injury claim - Claimant aged 21 rendered in vegetative state with 100% functional disability - Last drawn salary can be taken as basis for notional income even if claimant was unemployed on date of accident - No deduction permissible towards Mediclaim contribution - In cases of lifelong vegetative state, attendant charges, nursing charges, physiotherapy charges and future medical expenses can be assessed by applying multiplier method to arrive at just compensation - Compensation enhanced from Rs.1,30,53,544/- to Rs.4,05,21,616/- with interest increased from 6% to 7% per annum.
Statutory provision(s): Motor Vehicles Act, 1988 (Sections relating to compensation and interest)
ICICI Lombard General Insurance Co. Ltd. v. Parth Sareen, (Delhi) : Law Finder Doc Id # 3015246
