The Supreme Court of India has enhanced the motor accident compensation for an appellant who, as a 14-year-old student, suffered 77.1% permanent disability in a 2002 road accident. The Court, modifying the judgment of the Kerala High Court, awarded a total compensation of Rs. 15,13,337/-.
The judgment was delivered by a bench comprising Justice K. Vinod Chandran and Justice N.V. Anjaria in Civil Appeal No. 6544 of 2024, filed by the appellant, Riyas, seeking an enhancement of the compensation awarded by the High Court.
Background of the Case
The case pertains to a motor accident that occurred on April 19, 2002. The appellant, then a 14-year-old student in the 7th standard, was travelling in an auto rickshaw which was hit by a lorry (No. KRR-6987). The lorry was owned by respondent No. 1, driven by respondent No. 2, and insured with respondent No. 3, the Insurance Company.
The Motor Accident Claims Tribunal, Thrissur, in an application filed under Section 166 of the Motor Vehicle Act, 1988, concluded that the accident occurred due to the “rash and negligent driving by the driver of the lorry.” The Tribunal awarded a total compensation of Rs. 1,73,000/- with 7% interest.
The appellant appealed to the High Court of Kerala, Ernakulam, which, by its judgment on January 7, 2020, enhanced the award, granting an additional compensation of Rs. 5,75,883/- with 8% interest. The appellant, still seeking further enhancement, approached the Supreme Court.
High Court’s Assessment
The High Court accepted the disability certificate assessing the appellant’s permanent whole-body disability at 77.1%. It applied a multiplier of 15 and assessed the minor’s notional monthly income at Rs. 3,620/-. After adding 40% for future prospects, it arrived at an additional compensation of Rs. 4,12,383/- for disability.
The High Court also enhanced amounts for bystander expenses (to Rs. 3,300/-), extra nourishment (to Rs. 700/-), medical expenses (Rs. 53,250/- based on bills), pain and suffering (Rs. 30,000/-), loss of amenities (to Rs. 80,000/-), loss of marriage prospects (Rs. 50,000/-), and future treatment (Rs. 25,000/-).
Supreme Court’s Analysis and Enhancement
The Supreme Court bench, hearing the appeal, noted that the “question of enhancement of the compensation needs to be favourably addressed.” The Court referred to its recent 2025 decision in Sona (minor) vs. Manual C.M. as a “guiding precedent,” noting its facts were “akin” (a 12-year-old minor suffering 75% permanent disability).
The bench re-assessed the compensation under several heads:
- Loss of Future Earnings: The Court affirmed the High Court’s calculation inputs as “reasonable.” It upheld the monthly income of Rs. 3,620/-, the addition of 40% future prospects (as per National Insurance Company Limited vs. Pranay Sethi & Others), and the multiplier of 15. The compensation on this head was calculated as: (Rs. 3,620 x 12 = Rs. 43,440/- p.a.) + 40% (Rs. 17,376) = Rs. 60,816/-. This, multiplied by 15 (multiplier) and 77.1% (disability), resulted in Rs. 7,03,337.04/-.
- Medical Expenses: The Supreme Court observed that the High Court, by relying solely on actual bills, had overlooked “miscellaneous amounts” and “out-of-pocket expenses” during the appellant’s 22-day hospital stay, as well as future medical needs. The Court awarded a total of Rs. 50,000/- under this head (titled Future Medical Expenses).
- Pain and Suffering: Citing the law laid down in K.S. Muralidhar v. R. Subbulakshmi & Anr., the Court significantly enhanced this amount, awarding Rs. 3,00,000/-.
- Loss of Marriage Prospects: Relying on the parameters in Kajal vs. Jagdish Chand, the compensation was enhanced to Rs. 3,00,000/-.
- Attendant Charges: The Court awarded Rs. 40,000/-.
- Special Diet and Transportation: An amount of Rs. 40,000/- was awarded, citing Sidram v. Divisional Manager, United India Insurance Ltd.
- Loss of Amenities: The Court found the High Court’s award of Rs. 80,000/- to be a “just sum” and retained it.
Final Decision
The Supreme Court calculated the total compensation payable as follows:
- Loss of future earnings/disability: Rs. 7,03,337.04/-
- Pain and suffering: Rs. 3,00,000/-
- Loss of Amenities: Rs. 80,000/-
- Attendant charges: Rs. 40,000/-
- Loss of marriage prospect: Rs. 3,00,000/-
- Special diet and transportation: Rs. 40,000/-
- Future Medical Expenses: Rs. 50,000/-
- TOTAL: Rs. 15,13,337.04/-
The Court held that the appellant is entitled to a total compensation of Rs. 15,13,337/- (rounded off). This resulted in an additional compensation of Rs. 7,64,454/- over and above the High Court’s award.
The appeal was allowed, and the judgment of the High Court was modified. The Supreme Court directed the respondent No. 3-Insurance Company to pay the additional compensation with interest at 8% p.a. from the date of the filing of the application until realisation, within eight weeks.
