The Supreme Court on Wednesday said the Centre is bound to give minimum standards of relief including ex-gratia assistance to victims of Covid-19. The National Disaster Management Authority (NDMA) has been directed to frame guidelines within six months to compensate the kin of Covid-19 victims.
However, the top court reasoned that since extending financial help would impact the State's exchequer, the reasonable amount to be provided is left to the wisdom of national authority".
"The government has to decide its priorities and reliefs. It has to provide healthcare, food and shelter. It has to take care of the economy. Ex gratia compensation will have financial implications. No state or country has unlimited financial resources. It is not appropriate for this court to direct payment of the particular amount of 4 lakh. Priority is to be fixed by the government," the bench added.
Justices Ashok Bhushan and MR Shah observed that the NDMA had failed its statutory duty by not framing guidelines to compensate the victims of Covid-19. "There is nothing on record to show the guidelines for the minimum standard of relief. Since Section 12 (of the Disaster Management Act, 2005) is mandatory, the national authority has to prescribe guidelines which include ex gratia (for Covid victims). By not prescribing guidelines national authority has failed to perform its job under Section 12 of the Act," the top court held.
The Supreme Court's verdict comes as a relief to kin of at least 3.85 lakh victims who died of Covid.
The top court further held that death certificates of Covid-19 victims should show the exact cause of death. There will be also a facility for correcting the cause of death if the family is not satisfied, the apex court added.
On the issue of insurance and social security for those who were affected by Covid, the top court directed the Centre to take "appropriate steps" under the 15th Finance Commission report.
The Supreme Court's verdict came on a plea filed by advocates Gaurav Bansal and Reepak Kansal seeking directions for the provision of ex-gratia compensation of Rs. 4 lakh to the next of kin of Covid victims.
The Ministry of Home Affairs (MHA) on June 20 had told the Supreme Court that any death resulting from Covid would be certified as such. All deaths due to Covid, irrespective of co-morbidities will be classified as Covid deaths. Only those cases, where it was clear that there was an alternate cause of death and the same could not be attributed to Covid, even if the virus was procedurally detected, would be exempted.
The government had further submitted that it was unable to pay Rs 4 Lakh compensation to the 3.85 lakh people who succumbed to Covid-19.
"If ex-gratia of Rs 4 lakh is given for every person who loses life due to Covid-19, the entire amount of SDRF (State Disaster Response Fund) may possibly be spent on this item alone, and indeed the total expenditure may go up further," said the Centre had said.
"If the entire SDRF funds get consumed on ex-gratia for Covid-19 victims, the States may not have sufficient funds for organizing Covid-19 response, for provision of various essential medical and other supplies, or to take care of other disasters like cyclones, floods, etc. Hence, the prayer of the petitioner for payment of ex-gratia to all deceased persons due to Covid-19, is beyond the fiscal affordability of the State governments," the Centre had said.