Parliament passes the Civil Liability Act to ensure fair compensation and accountability

In a significant move, the Parliament has passed the Civil Liability Act, signaling a significant shift towards ensuring fair compensation and accountability for victims of negligence. The Bill, which was passed in a Joint Sitting on 3 July, aims to address the tragic incidents where individuals suffered physical and emotional harm without receiving appropriate justice or compensation.

While the Act has gathered support for its commitment to protecting the rights of victims, some concerns have also been raised about the potential financial burden on lower-income individuals.

The Civil Liability Act introduces a two-fold approach to determining compensation: economic and non-economic damages. Economic damages encompass the tangible financial losses incurred by victims, including loss of earning capacity and medical expenses. For instance, if a victim sustains an injury that prevents them from working, they would be compensated with the gross total of their monthly salary multiplied by the average life expectancy in Bhutan. This ensures that victims are adequately compensated for their loss of income.

Furthermore, the Act recognizes non-economic damages, such as emotional distress and loss of quality of life. These damages aim to address the intangible harm caused by negligence, taking into account the victim’s inability to pursue certain activities due to their injuries. For example, if a basketball player suffers a fractured leg and can no longer participate in matches, they would be eligible for compensation equivalent to their lost opportunities for a maximum of ten years.

The Bill underwent extensive deliberations in both the National Council (NC) and NA. Amendments were made to reduce the initial compensation amounts, which were deemed high, and to refine the scope of liability. The Act now outlines clear provisions for determining compensation and establishing the responsibility of defendants, including individuals, corporations, and government entities.

The Offtg Chief Legislative Officer of NA, Sonam Delek, highlighted the importance of compensating victims for the harm caused by negligence. He emphasized that the principle behind the Act is to ensure timely compensation for any harm or violation of rights suffered by individuals. While the Act primarily focuses on the liability of public authorities, it also holds healthcare providers accountable for any harm caused to patients due to negligence.

He said the good thing about the act is, “If harm is caused, it is imperative for that person to be compensated.”

He said that the positive impacts of the Civil Liability Act are significant. It instills a sense of responsibility and accountability among individuals and organizations, reducing incidents of negligence and ensuring greater safety measures. With clear guidelines for compensation, victims can find relief in knowing that their suffering will be acknowledged and addressed.

The Act consolidates scattered clauses from various laws, creating a comprehensive framework for fair compensation.

Sonam Delek also acknowledged the fear of malicious litigations and misuse of the Act.

Concerns have also been raised by some members of NA, particularly regarding the financial implications of the Act, especially for lower-income individuals.

Jurmi Wangchuk, Drukjeygang-Tseza MP shared the concern over middle-class people such as taxi drivers and also bus driver’s ability to compensate. “Our country’s economy is very bad. There are chances of people scamming others and will get rich with the damage compensation and it might become prevalent,” he said.

He added that he doesn’t know who will benefit from it, the rich or the poor.

Deputy Chair of the National Council, Dago Tsheringla, expressed his support for the Act, highlighting the positive impacts on the increased responsibility and accountability it brings to the individuals and agencies.

He stressed that the Act will minimize incidents resulting from negligence and create a more secure environment. He acknowledged the compensation to address non-economic damages, including psychological harm, however, he also acknowledged the lack of proper tools for measurement in this regard.

While concerns about the Act’s potential impact on the economy and the possibility of exploitation exist, the overall intention of the Bill is to strike a balance between compensation for victims and the accountability of offenders.

The Civil Liability Bill will likely lead to a shift in the legal landscape, prompting individuals and organizations to prioritize emotional well-being alongside physical safety. It aims to deter negligence by imposing substantial financial consequences on those found responsible.

The Act aims to promote a society where negligence is minimized, victims are adequately compensated, and individuals and organizations become more cautious in their actions.

The Civil Liability Act represents a significant step forward for Bhutan, consolidating scattered clauses and ensuring a comprehensive legal framework for fair compensation. By addressing both economic and non-economic damages, the Act seeks to restore the rights and well-being of victims and encourage responsible behavior among individuals and institutions alike.

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