medical compensation in india (1)

Upload: rekha-suresh-m-p

Post on 07-Apr-2018

219 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/3/2019 Medical Compensation in India (1)

    1/22

  • 8/3/2019 Medical Compensation in India (1)

    2/22

  • 8/3/2019 Medical Compensation in India (1)

    3/22

    2. Private hospitals charging all patients.

    3. All hospitals having free as well as paying patients and all the paying and free category

    patients receiving treatment in such hospitals.

    4. Medical / dental practitioners and hospitals paid by an insurance firm for the treatment of a

    client or an employment for that of an employee.

    Further, this judgment concedes that the summary procedure prescribed by the Consumer

    Protection Act, 1986 would suit only glaring cases of negligence and in complaints involving

    complicated issues requiring recording of the evidence of experts, the complainant can be asked

    to approach the civil courts.

    Damages Paid in medical negligence

    The Supreme Court in the case ofMinu B. Mehta vs. B.R. Nayar 5 has held that the right to

    receive compensation can only be against a person who is bound to compensate due to his failure

    to perform a legal obligation. In many cases doctors have been held liable for negligent acts,

    such as removal of a wrong eye or a kidney, based on pecuniary interest or where minimum

    facilities were available. Sums paid in compensation are normally referred to as damages, and

    are meant as financial restoration of the victim to the equivalent of his state before the negligence

    supervened. Medical negligence is something that is penalized the world over. When a patient

    goes in for a medical procedure, the person is entrusting their lives to the doctor (s) attending on

    them. It used to be said earlier that a Doctor is a very respected person, and that it would be

    unfair to penalize a doctor for some problem that occurs during a medical procedure; this is now

    countered by the argument that modern hospitals and the medical industry charges market rates

    for their procedures, and hence are not doing any favors to patients.6

    CONCEPT OF DAMAGES OR MEDICAL COMPENSATION

    Once the complainant has established that the defendants lack of care caused his injuries he is

    entitled to be compensated for all of his losses which are attributable to those injuries. In case of

    51977 (2) SCC 441

    6See, http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-

    negligence/, retrieved on 20/5/2009

  • 8/3/2019 Medical Compensation in India (1)

    4/22

    personal injuries, damages are divided into two categories: special damages and general

    damages. The basic principle in awarding compensation is to put the plaintiff in the position he

    would have been had the negligence not occurred. Obviously, although the purpose is to

    compensate the victim for his injuries, in reality no amount of money can compensate for the

    pain and suffering sustained. 7

    The increase in consumerism, raised expectations, wider publicity about high technology

    medicine have also served to increase the tension under which medicine is both practiced and

    perceived.8

    The Basis Of Liability

    The nature of the relationship between doctors and patients is determined largely by the practice

    of the medical profession, and shaped by a strong commitment to long standing principles of

    medical ethics. The law plays a significant role, however, in providing a structure within which

    the doctor- patient relationship is conducted. 9

    The provision of compensation is one of the major functions of law. Receipt of damages

    represents compensation for pain, suffering, and injury to health, reduced life expectancy or

    death. 10

    This may also include claims for certain financial losses such as loss of earnings (past and future)

    and medical care (also past and future), for example. Scots and English law differ in their

    approach to damages. 11

    Its usually fault as a basis of liability on which compensation is ordered by the courts. In

    adversarial litigation process like that in India it is essential that the courts not only look into

    appreciating the victims claim that there has been negligence but also ensure that once that has

    7Khan Malcolm and Robson Michelle, Medical Negligence, Cavendish Publishing Limited, 1997, Great Britain, at

    page 203

    8Phillips Fulton Andrew, Medical Negligence Law: Seeking A balance, Dartmouth Publishing Company, 1997,

    England, at Page 1

    9Jones A Michael, Medical Negligence, Sweet and Maxwell, London, 2003, at page 56

    10See, Damages (Scotland) Act 1993, discussed in The Damages (Scotland) Act 1993, F.Maguire (1993), S L T245.

    11Phillips Fulton Andrew, Medical Negligence Law: Seeking A balance, Dartmouth Publishing Company, 1997,

    England, at Page 82

  • 8/3/2019 Medical Compensation in India (1)

    5/22

  • 8/3/2019 Medical Compensation in India (1)

    6/22

    are personal and non-pecuniary such as compensation for disfigurement and pain which has to be

    quantified in monetary terms. 15

    InHughes v Hay 16, the trial judge awarded a sum of 3,000 Pounds to cover the prospect of the

    plaintiff having difficulty in finding employment should he ever lose his job as a serving police

    officer. This award for disadvantage on the labour market was based on the assumption that he

    would be fit enough to carry on for ten more years in the police services. The plaintiff appealed

    and sought leave to have the court consider new evidence that he was in fact subsequently retired

    after the trial from the police force on medical grounds, following a police medical examination

    three months later. The court of appeal allowed a retrial on the questions of this discharge.

    The damages are usually paid on the following based categories17:

    1. Pain and SufferingThis forms the part of general damages award. The damages are assessed at the date of

    the trial and not the date of injury. It is unlikely that any injury will not result in some

    degree of pain and suffering; therefore as a rule the courts do not recognize the injury

    itself as a separate head of damage, except where it is specific, e.g. loss of an arm or leg

    where there are recommended for such injuries. The courts also take into account any

    shock suffered by the plaintiff.

    2. Loss of Amenity18Damages under this head seek to compensate the plaintiff for his loss of enjoyment as a

    result of the accident, i.e., when he can no longer do the things he was accustomed to

    doing. The court takes into account how long the plaintiff will be deprived of these

    amenities; if it is for the rest of his life the damages awarded will be in proportion to his

    15MA Jones- Nelson Rodney and Burton Frank, Medical Negligence Case Law, Butterworths Publications, London,

    1995, at Page 147 and 148

    16 MA Jones- Nelson Rodney and Burton Frank, Medical Negligence Case Law, Butterworths Publications, London,

    1995, at Page 148

    17Khan Malcolm and Robson Michelle, Medical Negligence, Cavendish Publishing Limited, 1997, Great Britain, at

    page 203

    18Khan Malcolm and Robson Michelle, Medical Negligence, Cavendish Publishing Limited, 1997, Great Britain, at

    page 204

  • 8/3/2019 Medical Compensation in India (1)

    7/22

    age and life expectancy. The plaintiff need not be aware of the loss of amenity; what

    matters is that the amenity is lost.

    The general damages for pain and suffering and loss of amenity are assessed once and for

    all at trail.

    3. Loss of Future EarningsThis head is an exception to the general rule that pecuniary losses fall into the special

    damages category. The reason is that it is often impossible to say what the plaintiffs

    future loss would have been but for his injury. For e.g., it may be unclear how long he

    will require medical attention or when or if at all he will return to work.

    4. Damages for handicap in the labour market- the Smith v Manchester award19Damages under this head are often referred to as damages for loss of a persons earning

    capacity. A true award under this head is made to a plaintiff who is able to return to his

    employment but his injuries mean that he is more likely to lose his job in the vent of

    redundancies and/or he is plainly at a disadvantage in the labour market, e.g.

    predisposition to similar injury or has been unemployed through his disabilities since the

    injury.

    5. The Lost Years.These damages are incapable of any precise calculation and form part of the general

    damages award. The claim is made by the plaintiff for the lost years i.e. the period by

    which his life is shortened because of his injuries and during which he would have

    received remuneration.

    6. Past and Future expensesIn assessing these losses there is no difference between past and future losses; the

    damages are dealt with under the same categories and the same deductions and/or

    contingencies are taken into account. The main item under this head will be medical

    expenses, both past and future medical expenses and any other future expenses will be

    assessed as part of the plaintiffs general damages; those which have already been

    incurred will form part of the special damages.

    19Smith v Manchester Corporation (1974) 17 KIR 1

  • 8/3/2019 Medical Compensation in India (1)

    8/22

    As far as loss of earnings is concerned the expenses are assessed using the

    multiplicand/multiplier approach. Generally , a greater multiplier is applied here than for

    loss of earnings since it is assumed that most expenses will be permanent future

    expenses, except where the plaintiffs expectation of life is short, in which case his loss

    of earnings will be greater.

    Other pertinent categories that are borne in the order of compensation are

    accommodation, nursing care, medical expenses etc.

    The Multiplicand/Multiplier approach

    InLim Poh Choo v. Camden and Islington Area Health Authority20 Lord Scarman said:

    The principle of law is that compensation should as nearly as possible put the party who has

    suffered in the same position as he would have been in if he had not suffered the wrong.

    The quantification of past loss involves a survey of what has happened and the quantification of

    future loss involves an assessment of what will happen. No matter how cogent the evidence on

    behalf of the plaintiff, the evaluation of the future loss is bound to be plagued by uncertainty.21

    The intended purpose of the award for prospective damages is to provide the plaintiff with a sum

    which will both cover his anticipated needs until death and also compensate him for his loss of

    earnings until his intended retirement.

    This is where the multiplier is used by the courts, which is determined by the number of years

    the awarded sum of damages, if invested, should last, being equivalent to the period of future

    loss or expense. The award of damages for future loss and expense is intended to replace losses

    or needs at defined rates (the multiplicands) over a future period or future periods. There may be

    separate of loss or needs to be considered, for example:

    Over the course of childhood until the age of 18 years; A course of future treatment or therapy which may be forecast to last a finite period of

    years;

    20(1980) A.C. 174 at 192; (1979) 2 All E.R.910 at 917

    21Andrews Peter and Lee Terry, Catastrophic Injuries: A Practical Guide to Compensation, Sweet and Maxwell

    publication, England, 1997, at Page 97

  • 8/3/2019 Medical Compensation in India (1)

    9/22

    A working life lost as a result of injuries; A full life until death

    The award will be calculated on the assumption that at the end of the period of loss or need no

    windfall sum of damages will remain.22

    The thinking in England is that the capital got in the award is invested and earns interest.

    Therefore the greater the rate of interest which is annually obtained on the unexpended portion of

    the award, the longer the initial sum will last. The lower the predicted or assumed rate of interest,

    the greater the multiplier factor should be in order to achieve fair compensation for suture loss

    and expense.

    The multiplier is the key mechanism by which the multiplicand is converted into a capital sum.

    The application of the multiplicand-multiplier process converts the cost of a stream of future

    losses and/or needs into a one-off lump sum. It calculates the present value of the award needed

    to meet those future losses and needs.

    In practice the principal features taken into consideration for determination of multiplier are: 23

    (i) The arithmetical calculation of the actual period of loss or expense, which periodcommences with the date of trail;

    (ii) The appropriate discount rate for early receipt of lump sum, which will be based on adetermination of the likely rate of interest to be earned on the money in the future;

    (iii)

    The contingencies, both adverse and favourable, which may have affected theplaintiff in the future had he not been injured.

    The function of the multiplier was explained by Hobhouse J24. (as he then was) in Willett v.

    North Bedfordshire Health Authority:

    the function of the multiplier of an annual sum is first to convert one or more annual sums,

    that is, items of expenditure, into a capital sum. It is, secondly, to allow for the advancement of

    the payment or payments that are being made. It is, thirdly, to allow for contingencies and other

    adjusting factors to be taken into account. The first and second exercises are mathematical in

    22Andrews Peter and Lee Terry, Catastrophic Injuries: A Practical Guide to Compensation, Sweet and Maxwell

    publication, England, 1997, at Page 98

    23Andrews Peter and Lee Terry, Catastrophic Injuries: A Practical Guide to Compensation, Sweet and Maxwell

    publication, England, 1997, at Page 99

    24(1993) P.I.Q.R. Q166at Q167.

  • 8/3/2019 Medical Compensation in India (1)

    10/22

    approach and should be dealt in that ay, the third is something to be assessed and has to take into

    account all the circumstances of the case, including how the multiplicand has been arrived at.

    Different multipliers and multiplicands are used in different cases. The law of the country lays

    down the multiplicand for the claims of a certain category.

    What is noted is that in England rarely any cases go to contested hearing, out of court settlement

    is the norm set there and when the cases do reach the court there seems to be a deeper

    understanding of the overall affect on the victim of the injuries. The following list of paid

    damages in various injuries shows the trend25:

    Head InjurySevere Brain Damage up to 200,000

    Moderately Severe Brain Damage up to 145,000

    Moderate Brain Damage up to 110,000

    Minor Brain Damage up to 22,000

    Minor Head Injuries up to 6,000

    Psychiatric DamagesSevere Psychiatric Damage up to 60,000

    Moderately Severe Psychiatric Damage up to 28,000

    Moderate Psychiatric Damage up to 10,000

    Minor Psychiatric Damage up to 3,000

    Post-Traumatic Stress DisorderSevere Post-Traumatic Stress Disorder up to 50,000

    Moderately Severe Post-Traumatic Stress Disorder up to 30,000

    Moderate Post-Traumatic Stress Disorder up to 12,000

    Minor Post-Traumatic Stress Disorder up to 4,000

    Chest InjurySevere Chest Injuries up to 77,000

    Moderate Severe Chest Injuries up to 52,000

    Moderate Chest Injuries up to 28,000

    Mild Moderate Chest Injuries up to 9,000

    25See, http://www.100percent-compensation.co.uk/compensation_awards.htm, retrieved on 12/5/09 at 11:30 am

  • 8/3/2019 Medical Compensation in India (1)

    11/22

    Mild Chest Injuries up to 6,000

    Slight Mild Chest Injuries up to 2,500

    Slight Chest Injuries up to 2,000

    Eye InjuryTotal Blindness up to 140,000

    Loss of Sight in One Eye with Reduced Vision in the other up to 92,000

    Total Loss of One Eye up to 34,000

    Minor Eye Injuries up to 4,000

    Deafness DamagesTotal Deafness up to 57,000

    Severe Loss of hearing in One Ear up to 23,000

    Moderate Loss of hearing up to 15,000

    Mild Loss of hearing up to 7,000

    Slight loss of hearing up to 6,000

    Pelvis/Hip InjurySevere Pelvis/Hip Injuries up to 67,000

    Moderate Severe Pelvis/Hip Injuries up to 32,000

    Moderate Pelvis/Hip Injuries up to 20,000

    Mild Pelvis/Hip Injuries up to 6,000Minor Pelvis/Hip Injuries up to 2,000

    Arm InjuryLoss of Both Arms up to 150,000

    Loss of One Arm (at Shoulder) over 72,000

    Loss of One Arm (above Elbow) up to 67,000

    Loss of One Arm (below Elbow) up to 57,000

    Severe Arm Injuries up to 67,000

    Moderate Arm Injuries up to 31,000

    Mild Moderate Arm Injuries up to 20,000

    Mild Arm Injuries up to 10,000

  • 8/3/2019 Medical Compensation in India (1)

    12/22

    MEDICAL COMPENSATION IN US

    Presently, the medical malpractice liability cap in Virginia is $2 million. In Indian currency that

    is 10 Crores approximately! The limit on punitive damages is $350,000. A judge denied most of

    the government's request to cut back an $8.5 million award for a woman who was misdiagnosed,

    and who suffered injury from flesh eating bacteria!

    Sophia and Darrell Savage filed a medical malpractice suit against Three Rivers Medical Center

    - and won $2.5 million to cover their medical costs. They awarded Sophia $1.9 million for past

    and future pain and suffering and $65,968 for past medical expenses. Darrell was awarded

    $500,000 for loss of consortium. Savage underwent her hysterectomy in 2001, in the hospital

    where she was also employed as a registered nurse. Four years later, after suffering from

    abdominal pain, doctors discovered the sponge had deteriorated and attached to her lower

    intestine. She required another surgery in which some of her intestine was removed. She will

    have pain for the rest of her life. Although the statute of limitations for medical malpractice

    cases is two years, since the sponge was not discovered until many years later, the Savages were

    still able to file their lawsuit.26

    It seems that in the US too there is increased stress on the victims right to be put in the condition

    before the negligence happened as far as monetary help is concerned.

    MEDICAL COMPENSATION IN INDIA

    Anuradha Saha Case

    The landmark medical negligence suit in India is still up for final hearing in the SC on 14th July

    2009 in Anuradha Saha Death Case. She died in 1998 due to medical negligence of doctors of

    a hospital in West Bengal and Kunal Saha had filed a Rs.770 million ($17 million) compensation

    claim. In the process, he has scripted one of the most high profile medical negligence cases in

    India. 27The National Consumer Disputes Redressal Commission Bench, presided by Justice M

    26http://www.hsinjurylaw.com/blog/index.cfm?catid=371, retrieved on 17/5/09

    27See, http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-

    Medical-Compensation-Clai-8473-1/, retrieved on 27/4/09

  • 8/3/2019 Medical Compensation in India (1)

    13/22

    B Shah, absolved the Advanced Medical Research Institute (AMRI)-Apollo Hospital and its five

    Kolkata-based doctors Sukumar Mukherjee, Balram Prasad, Kaushik Nandi, Abani Roy

    Chaudhary and Vaidyanath Haldhar of charges of medical negligence.28

    What is noteworthy is whatthe NCDRC observed in its judgment while dismissing the case:"Whether the courts or the consumer fora can sit in appeal against the decision taken by the

    expert doctors with regard to administration of a particular dose of medicine? Answer would be

    No. We reiterate that doctors or surgeons do not undertake that they will positively cure a

    patient. With regard to the alleged deficiency in the treatment given to Mrs. Anuradha by

    opposite party doctors, there is no substance.

    The insensitive way the courts seem to be handling the compensation claims only adds to the

    worries about how far compensation jurisprudence will go in the country!

    Prashant S Dhananka Case

    In a recently decided case the Supreme Court on 14 th May 2009 awarded a compensation of Rs 1

    crore to a software engineer who suffered permanent disability due to medical negligence at a

    government-owned hospital in Andhra Pradesh.

    The bench enhanced the compensation to Rs 1 crore from Rs 15 lakh which was awarded by the

    Andhra Pradesh High Court to Prashant S Bhanaka, the software engineer. The victim suffered

    permanent disability in the form of paralysis and other complications, rendering him incapable of

    all normal chores after undergoing a surgery in Nizam Institute of Medical Sciences. 29

    It is a pittance compared to the 5 million pounds (a little over Rs 37 crore) awarded to

    British TV actress Leslie Ash in a similar case last year.While it took Dhananka 19 years

    to get justice, British actress Leslie Ash got her compensation in just four years. She had

    brought the claim after contracting an MSSA (methicillin-sensitive staphylococcus aureus)

    28See, Apex Consumer Court Rejects Rs 143 Cr Medical Negligence Claim on website of Bio Medicine at

    http://www.bio-medicine.org/medicine-news/Apex-Consumer-Court-Rejects-Rs-143-Cr-Medical-Negligence-Claim-

    10806-1/, retrieved on 27/4/09

    29See, http://www.ndtv.com/news/india/medical_negligence_case_victim_gets_rs_1_crore.php, retrieved on

    19/5/09

  • 8/3/2019 Medical Compensation in India (1)

    14/22

    infection while being treated by the Chelsea and Westminster Hospital in London for two

    cracked ribs in April 2004. As a result of the infection, she suffered severe mobility problems

    and even after four years walked with the aid of a stick. Dhananka's nightmarish experience is

    similar to the case of national table tennis player V Chandrasekhar, who fought a legal battle

    against Apollo Hospital, Chennai, for over a decade before being awarded Rs 19 lakh by the

    Supreme Court in February 1995 -- the highest compensation in a medical negligence case in

    India before the Dhananka verdict. Chandrasekhar too had been left partially paralyzed due to

    medical negligence.30

    Omega Hospital Case

    The Dakshina Kannada District Consumer Disputes Redressal Forum recently passed an order

    directing Omega Hospital Ltd. in Pumpwell area here to pay Rs. 15 lakh as compensation for

    negligence in handling a patient seven years ago. This is the first time s uch a high amount has

    been awarded as compensation. Mohammed Ashraf (40) was admitted to the hospital on October

    10, 2002 after he complained of mild chest pain. The Director of the hospital and the cardiologist

    advised him to undergo a sophisticated surgery that would cost Rs. 2 lakh. But after the

    operation, the patient did not regain consciousness for quite some time. Later, his speech became

    incoherent. His wife, Hurunissa, says that Mr. Ashraf is now like a living corpse. He is

    bedridden.

    The forum found that Mr. Ashrafs condition was caused because his brain did not receive

    sufficient oxygen during the operation. He was put on an artificial heart and lung machine, it said

    and added that the doctors should have monitored his condition and calibrated the machine so

    that it pumped the right quantity of blood and oxygen to the brain.

    Based on material evidence, the forum came to the conclusion that negligence on part of the

    doctors was obvious. The judgment says the hospital authorities made the patient and his family

    30See, SC awards techie Rs 1cr damages for medical negligence, 15 May 2009, 0134 hrs IST, DhananjayMahapatra, TNN, at http://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cms

  • 8/3/2019 Medical Compensation in India (1)

    15/22

    falsely believes that this was an urgent surgery. The complainant was not informed of any

    possible after-effects of the surgery or untoward complications. The forum found that the

    doctors had obtained the consent of the patient when he was under sedation. The hospital

    authorities, the judgment said, miserably failed to prove that they had taken written consent

    from the patient and his relatives. Considering the present age and condition of the victim, the

    forum asked the hospital authorities to pay Rs. 15 lakh, irrespective of medical bills. 31

    The Karnataka State Consumer Disputes Redressal Commission has found an obstetrician and

    gynecologist guilty of deficient service and has ordered him to pay up Rs 1, 50,000 as

    compensation to a 31-year-old woman from Ranebennur.

    Under the CPA the case goes to the district fora and then if appealed moves up to the National

    Commission. There also lies an appeal to the Supreme Court under Art 32 and to the High Court

    under Art 256.

    Jurisdiction of Agencies:-District Commission: entertains claims up to the value of Rs 20 lac.

    State Commission: entertains claims from Rs 20 lacs to Rs 1 crores.

    National Commission: claims exceeding Rs 1 crores.

    There has been no revival in the compensation payment by the consumer forums or the courts.

    The compensation ordered to be paid seems to be a petty amount in relation to what the victim of

    medical negligence suffers.

    Damages for personal injury and death typically take the form of a lump sum. The award or the

    settlement is made once for all, and there is- except in rare cases- no possibility of increasing it

    or decreasing it later because of changes in the claimants situation. However the lump sum

    remedy does raise acute problems wherever a person suffers serious injuries, the effects of which

    may still be felt long after the damages are assessed. 32 It is highly questionable whether

    31See, http://www.hindu.com/2009/02/06/stories/2009020658950300.htm, retrieved on 2/5/09

    32Cane Peter and Atiyah Patrick, Atiyahs Accidents, Compensation and the law, Cambridge university Press, United

    Kingdom, 2008, at page 130

  • 8/3/2019 Medical Compensation in India (1)

    16/22

  • 8/3/2019 Medical Compensation in India (1)

    17/22

    THE WAY FORWARD

    Indias experience with medical compensation has been insufficiently marred by very slow

    growth of medical jurisprudence understanding. There is no social security structure in place and

    therefore medical service becomes almost a privilege. The courts have not been progressive in

    applying principles of basic human rights of the individual to health and effective medical care

    and thus the medical compensation structure in India has been stagnated in the dark ages! The

    fundamental principle applied to the assessment of an award of damages in tort is that the

    claimant should be fully compensated. He is entitled to be restored to the position that he would

    have been in had the tort not been committed, in so far as this can be done by the payment of

    money.34

    The obvious question to which the various problems with the system of lump sum damages gives

    rise is whether some system of periodical payments would be preferable. It can be a better way

    of putting back the injured person in the position they would have been had they not been

    injured. This can also suggest that there can be a combination of lump sum and periodical

    payments. Though its right to say that no amount of money can give back what has been taken it

    has to be borne in mind that the victim of negligence should be given enough help to sustain in

    future contingencies.

    Going through the various compensation awards there seems to be a clear lack of understanding

    of the concept of medical negligence affecting the future of the victim. Lump sum payments

    have become the trend and considering how 1 crore compensation is being hailed as a

    benchmark only shows that medical jurisprudence hasnt become a part of the legal studies. Like

    the western countries there is a complete lack of in depth separate study on various aspects of

    medical negligence and mal practice and the deciding of compensation value on that basis. The

    present system of compensation doesnt sufficiently reflect clinical responsibility and authority.

    STRUCTURED SETTLEMENTS

    34Livingstone v Rawyards CoalCo (1880) 5 App. Cas.25, 39.

  • 8/3/2019 Medical Compensation in India (1)

    18/22

    Under such payments damages for future losses are calculated as a lump sum but are paid

    in not a lump sum form. The payment mode is decided as to how the need varies.

    DAMAGES SCHEME

    1. Compensation for Pain and Suffering

    2. Earning Replenishment: perhaps 70% of income

    3. Re-imbursement of direct expenses- serious cases in which there was a past and

    future liability for care.

    PERIODICAL PAYMENTSA structured settlement is something which is decided on the wish of the two parties

    whereas periodical payments can be decided by the courts against the wish of the

    defendant. A periodical payment order may directly specify the amount to be paid

    periodically without calculating a lump sum, leaving it entirely to the defendant to decide

    how to satisfy the order. Before making the order the court must be satisfied that

    continuity of payment under the order is reasonably secure.

    A periodical payment order can provide for payments to continue after the death of the

    injured person, in order to provide support for dependants.

    LOST EARNINGS AND SUPPORTIf the life expectancy of a victim has been reduced by injuries, damages may be

    recovered for loss of earnings not only up to date of expected death but also in respect of

    the years when, but for the injuries, the claimant would have been alive and earning (the

    lost years). This is to provide support for dependants of the injured person after death.

    The multiplicand and multiplier structure is unheard of in India and its time that the

    jurists apply this structured formula for calculating the past and future losses of the

    victim.

    PENSION STYLE SCHEMEIn some cases a claimant maybe so severely disabled or incapacitated thats medical and

    nursing treatment may be required indefinitely or indeed for the rest of the injured

  • 8/3/2019 Medical Compensation in India (1)

    19/22

    persons life. It empowers a care direction to be levied against the hospital or practice

    to provide the necessary care.

    PROFESSIONAL INDEMNITY INSURANCEThe principle of insurance is based on eventualities. The insurer covers the risk on

    payment of consideration known as premium, and the agreement/contract is embodied in

    the instrument, known as the policy. It is advisable to take an insurance cover for

    professional pursuits. In case of litigation in court many a time it is the insurance

    company which gives legal help to the doctors.

    In case of negligence claim the litigation expenses, the claim put up by the affected

    parties and /or other liabilities are borne by the insurance company provided the terms

    and conditions of the contract are fulfilled and the policy is in full force and effect. The

    concept is to indemnify and not to earn money. Specialists owe a greater degree of care

    and skill towards their patients therefore premium for them is higher. 35

    Though this concept is prevalent in use in western countries, in India the medical

    professionals hardly have any such insurance cover. Professional Indemnity Insurance

    cover became available for doctors and Medical establishments only from December,

    1991.

    36

    Bringing about more usage of such cover for doctors can bring s significant shiftin the compensation given to a victim. The courts can then look at the compensation to be

    awarded as victim centric rather than saving the doctors.

    In order to streamline the system a banding system for benefits could be developed underwhich levels of benefits could be graded.

    MEDICAL AUDITSAgain an unheard concept in India. A complete analysis on what has been the trend of

    medical negligence in India can lay the foundation for the damages awarded to be

    35Kaushal Anoop, Medical Negligence and Legal remedies, Universal Publishing House, Delhi 1998, at page 42

    36Singh Jagdish and Bhushan Vishwa, Medical negligence and Compensation, Bharat Law Publications, Jaipur,

    2004, at Page 199

  • 8/3/2019 Medical Compensation in India (1)

    20/22

    reviewed and for the pecuniary jurisdiction of the commissions to be increased. An

    independent body does and audit on the standards of services being provided by the state

    run hospitals and private hospitals. This audit then helps in getting the hospitals to better

    up the services. In the western countries organisations like Harward Law School have

    conducted such audits. It has been defined as a systematic critical analysis of aspects of

    quality of care, reference to standards of care, and commitment to change.37

    ORGANISATIONAL RESPONSIBILITYThe courts enquiry is narrowly focused upon the behavior of those immediately involved

    and that an award of damages depends upon establishing fault. 38 A compendium entitled

    Medical Accidents, edited and with contributions by Vincent et al, was published in 1997.

    It suggested that the response by the law was inadequate and insufficiently sophisticated

    for the medical practice. Blame culture is of little use when it comes to understanding

    the complex appropriate remedial measures. The laws approach should be formally able

    to recognize a wide variety of input into accidents from management, procedures,

    systems and the synergy between them. The Indian system where the doctors are brought

    in as experts evidence provider by the forum if needed only goes on to bring the doctor

    community on one side as peers and they fail to look at the victim as a patient who has

    been wronged. The courts have to start looking into the full set up responsibility andensure that stigmatization, charring of the doctors future career arent the outcomes that

    the erring doctor is made to look at, organizational responsibility can to some extent lead

    to that step.

    References

    BOOKS REFERRED

    1. Khan Malcolm and Robson Michelle,Medical Negligence, Cavendish Publishing Limited,1997, Great Britain

    37Does clinical risk management improve the quality of healthcare? D .Harper Mills, GE. Von Bolschwing (1995),

    1 Clinical Risk171.

    38Philips Fulton Andrew, Medical Negligence Law: Seeking A Balance, Dartmouth Publishing, England, 1997, at

    page 168

  • 8/3/2019 Medical Compensation in India (1)

    21/22

    2. Phillips Fulton Andrew,Medical Negligence Law: Seeking A balance, Dartmouth PublishingCompany, 1997, England

    3. Jones A Michael,Medical Negligence, Sweet and Maxwell, London, 20034. MA Jones- Nelson Rodney and Burton Frank,Medical Negligence Case Law, Butterworths

    Publications, London, 1995

    5. Andrews Peter and Lee Terry, Catastrophic Injuries: A Practical Guide to Compensation,Sweet and Maxwell publication, England, 1997

    6. Singh Jagdish and Bhushan Vishwa,Medical negligence and Compensation, Bharat LawPublications, Jaipur, 2004

    7. Lewis J Charles, Clinical Negligence: a practical guide, Butterworths Publication, London,2001

    8. Boumil Mobilia Marcia and Elias E Marcia, The Law of Medical Liability, West PublishingCompany, USA, 1995

    9. McLean Sheila and Mason Kenyon John,Legal & Ethical Aspects of Healthcare, CromwellPress, UK, 2003

    10.Stauch Marc and Wheat Kay with Tingle John, Text, Cases & Materials on Medical Law,Cavendish Publishing Ltd, UK, 2004

    11.Mendelson Danuta, The Interfaces of Medicine and Law, Dartmouth Publishing Companyand Ashgate Publishing company, England and USA, 1998

    CASES REFERRED

    1. AIR 1996 SC 5502. 1977 (2) SCC 4413. Smith v Manchester Corporation (1974) 17 KIR 14. Livingstone v Rawyards Coal Co (1880) 5 App. Cas.25, 39

    JOURNALS

    Murthy, K.K.S.R., Medical Negligence and the Law, Indian Journal of Medical Ethics, Vol. 3,

    July-Sept, 2007.

    WEBSITES

    1. http://www.helplinelaw.com/docs//main, retrieved on 2.5.2009 at 1:30 p.m2. www.healthlibrary.com, retrieved on 2.5.2009 at 1:30 pm

    http://www.helplinelaw.com/docs/mainhttp://www.helplinelaw.com/docs/mainhttp://www.healthlibrary.com/http://www.healthlibrary.com/http://www.healthlibrary.com/http://www.helplinelaw.com/docs/main
  • 8/3/2019 Medical Compensation in India (1)

    22/22

    3. http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/, retrieved on 20/5/2009, at 11:30 am

    4. http://www.100percent-compensation.co.uk/compensation_awards.htm, retrieved on 12/5/09at 11:30 am

    5. http://www.hsinjurylaw.com/blog/index.cfm?catid=371, retrieved on 17/5/09, at 2:30 pm6. http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-

    Biggest-Ever-Medical-Compensation-Clai-8473-1/, retrieved on 27/4/09, at 4:25 pm

    7. http://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cms, retrieved on 15/5/09, at 5:30 am

    8. http://www.hindu.com/2009/02/06/stories/2009020658950300.htm, retrieved on 2/5/09, at3:30 pm

    9. http://www.legalserviceindia.com/article/l251-Medical-Negligence.html. retrieved on26/5/09, at 6:30 pm

    http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://www.100percent-compensation.co.uk/compensation_awards.htmhttp://www.100percent-compensation.co.uk/compensation_awards.htmhttp://www.hsinjurylaw.com/blog/index.cfm?catid=371http://www.hsinjurylaw.com/blog/index.cfm?catid=371http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://www.hindu.com/2009/02/06/stories/2009020658950300.htmhttp://www.hindu.com/2009/02/06/stories/2009020658950300.htmhttp://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.legalserviceindia.com/article/l251-Medical-Negligence.html.%20retrieved%20on%2026/5/09http://www.hindu.com/2009/02/06/stories/2009020658950300.htmhttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://timesofindia.indiatimes.com/India/SC-awards-techie-Rs-1cr-damages-for-medical-negligence/articleshow/4528596.cmshttp://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.bio-medicine.org/medicine-news/Stage-Set-For-Final-Hearing-On-India-u2019s-Biggest-Ever-Medical-Compensation-Clai-8473-1/http://www.hsinjurylaw.com/blog/index.cfm?catid=371http://www.100percent-compensation.co.uk/compensation_awards.htmhttp://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/http://ashisha.com/consumer/2009/05/16/supreme-court-awards-rs-1-crore-damages-for-medical-negligence/