IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID THURSDAY, THE 13TH NOVEMBER 2008 / 22ND KARTHIKA 1930 MACA.No. 564 of 2006() ---------------------- OPMV.962/2002 of MOTOR ACCIDENT CLAIMS TRIBUNAL, PARAVUR .................... APPELLANT(S): APPELLANT/3RD RESPONDENT -------------------------------------- NATIONAL INSURANCE COMPANY LIMITED, ALUVA NOW REPRESENTED BY ITS MANAGER, KOCHI REGIONAL OFFICE, AJAY VIHAR, M.G.ROAD, KOCHI-16. BY ADV. SRI.MATHEWS JACOB (SR.) RESPONDENT(S): --------------- KAMAL P.THOMAS, S/O.THOMAS, REPRESENTED BY HIS FATHER AND NATURAL GUARDIAN THOMAS, PARAKKATT HOUSE, GOTHURUTH KARA, CHENNAMANGALAM VILLAGE. (NO RELIEF ARE CLAIMED AGAINST RESPONDENTS 1 &2 IN THE ORIGINAL PETITION AND HENCE THE ARE NOT MADE PARTIES IN THIS APPEAL) ADV. SRI.PHILIP T.VARGHESE FOR R1 SRI.THOMAS T.VARGHESE FOR R1 SMT.V.T.LITHA FOR R1 SMT.ZEENATH.V.U. FOR R1 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 13/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. .................................................................... M.A.C.A. No.564 of 2006 .................................................................... Dated this the 13th day of November, 2008. JUDGMENT Ramachandran Nair, J. Appeal is filed challenging the award of compensation on the ground that the compensation awarded under various heads is very high. A specific contention also raised by the Insurance Company is that the interest granted at 9% is unusually high and in the normal course interest granted ranges from 6% to 7%. We have heard Senior Counsel appearing for the Insurance Company and counsel appearing for the respondent. 2. The main ground of challenge against the award is that the MACT granted Rs.4,08,000/- towards future bystander expenses. Even though the amount of compensation awarded is unusual, we do not propose to interfere with this because respondent has become a paraplegic and since he is bedridden, his parents are unemployed. Therefore, as an alternate to appointment of a home nurse, the parents of the victim have to give up their job and always will be by his side to 2 take care of him. The victim is periodically taken to hospital for treatment on account of bedsore and other complaints and therefore, there is no justification for interfering with the award of compensation of Rs.50,000/- towards cost of medical care in the future. However, we find force in the contention of the appellant that over and above reasonable compensation granted under every head including future expenses, MACT should not have granted interest at 9%. We, therefore, reduce the interest to 7.5% p.a. on the entire compensation amount. The appeal is allowed only to this extent. Since respondents have already spent substantial amount of compensation amount released to them, we direct the MACT to order deposit of balance amount in long term deposit either in the District Treasury or in Nationalised Banks or in stable Co-operative Banks with the highest possible interest so that the respondent get maximum interest, if not monthly, on quarterly basis for regular maintenance. In other words, release of any further substantial amount should be only on proof of 3 requirement. The deposit should be permitted in the name of the father as long as he is alive and thereafter, in the name of mother. C.N.RAMACHANDRAN NAIR Judge HARUN-UL-RASHID Judge pms