Supreme Court Enhances Compensation to Rs.15,13,337 for Minor with 77.1% Disability; Insurer Directed to Pay

A bench of Justices K. Vinod Chandran and N. V. Anjaria heard an appeal against the judgment and award of the High Court of Kerala, Ernakulam in MACA No. 89 of 2009, concerning enhancement of compensation under Section 166 of the Motor Vehicles Act, 1988. The matter related to claims arising out of a 2002 motor accident in which a 14‑year‑old student sustained grievous injuries and was assessed with 77.1% permanent disability.

The Court allowed the appeal in part and modified the High Court's award, holding that the appellant was entitled to total compensation of Rs. 15,13,337/-. The insurer was directed to pay the additional compensation of Rs. 7,64,454/- with interest at 8% from the date of filing of the claim application until realization, by credit to the claimant's bank account within eight weeks and to produce proof of payment before the Tribunal. The Court relied on precedents such as National Insurance Co. Ltd. v. Pranay Sethi and recent authority in Sona (minor) v. Manual C.M. to apply established parameters for assessing compensation for children and permanently disabled victims. The Court, in its reasoning, observed: Background The accident occurred on April 19, 2002, at about 12:15 pm when an autorickshaw carrying the appellant was struck by a lorry. The lorry was owned by respondent No.1 and driven by respondent No.2; the vehicle was insured with respondent No.3. The Claims Tribunal at Thrissur had found rash and negligent driving by the lorry driver, held the insurer liable, and awarded Rs. 1,73,000/- plus interest. The High Court enhanced the award and assessed additional compensation of Rs. 5,75,883/- with interest, applying a multiplier of 15 and accepting a disability certificate dated 20.11.2019 which assessed 77.1% whole‑body disability; the Government Pleader filed a memo dated 25.11.2019 accepting that disability and the insurer did not contest the percentage.

On appeal, the Supreme Court re‑examined the components of compensation. While it endorsed the use of multiplier 15 and the monthly income figure adopted by the High Court, the Court adjusted several heads. It held that future earnings loss on account of disability amounted to Rs. 7,03,337.04/-; it assessed pain and suffering at Rs. 3,00,000/-, loss of marriage prospects at Rs. 3,00,000/-, loss of amenities at Rs. 80,000/-, attendant charges at Rs. 40,000/-, special diet and transportation at Rs. 40,000/-, and future medical expenses at Rs. 50,000/-. The Court observed that actual hospital bills did not fully capture out‑of‑pocket and future medical needs and therefore fixed medical expenses at Rs. 50,000/-. Translating those components, the Court fixed total compensation at Rs. 15,13,337.04/-, rounded off to Rs. 15,13,337/-. The Court modified the impugned High Court judgment accordingly and directed the insurer to make payment within eight weeks and to file proof of payment before the Tribunal within one week of payment. The appeal was allowed and interlocutory applications, if any, were disposed of.

Case No.: Civil Appeal No. 6544 of 2024 Case Title: Riyas v. P. N. Shinosh & Anr. Appearances: For the Petitioner(s): Mr. Nishe Rajen Shonker, Advocate For the Respondent(s): Mr. Varinder Kumar Sharma, Advocate