Compensation Must Address Long-Term Needs and Recovery: Supreme Court Enhances Compensation for Accident Victim to ₹48 Lakhs

In a latest judgement, Supreme Court of India enhanced compensation for an accident victim, raising the total award from ₹27,21,600 to ₹48,00,000. The appellant, who sustained 60% permanent disability due to a road accident in 2009, had sought greater compensation for lifelong medical and attendant care, as well as non-pecuniary damages.

The appellant, a third-year B.Tech student, suffered severe injuries in a collision with a negligently driven truck. He underwent three surgeries and sustained permanent disabilities affecting his speech and mobility. The Motor Accidents Claims Tribunal (MACT) awarded ₹19,43,800 in compensation in 2014. Upon appeal, the High Court enhanced the amount to ₹27,21,600, primarily by revising the calculation for loss of income using a multiplier method. However, other heads of compensation, such as therapy and attendant care, remained unaddressed, prompting the appellant to approach the Supreme Court.

The Court highlighted several inadequacies in the earlier compensation awards. It noted that both MACT and the High Court failed to fully account for the appellant's long-term needs, despite medical evidence recommending extended therapies and continuous care.

The Court particularly criticized the limited duration of compensation for speech and physiotherapy, as well as insufficient provisions for attendant and transportation costs. It also deemed non-pecuniary damages for loss of amenities, pain, and suffering inadequate given the severity of the appellant’s disabilities.

Emphasizing the principle of “just compensation,” the Court observed:

“Compensation must reflect the uncertain recovery period and ensure the victim's lifelong dignity and quality of life.”

The Supreme Court enhanced the compensation to ₹48,00,000, factoring in:

Extended medical therapies and attendant care.

Increased transportation expenses.

Comprehensive non-pecuniary damages for reduced quality of life.

While affirming the High Court's calculation for loss of income, the Court ensured that other heads were adequately addressed in line with settled principles of law.

The judgment underscores the importance of tailoring compensation to reflect victims' lifelong needs, both pecuniary and non-pecuniary. By addressing long-term care and recovery, the Court reinforced its commitment to ensuring fair and reasonable compensation for motor accident victims.

Date of decision : January 6, 2025