Supreme Court enhances motor accident compensation, allows 40% future prospects for self‑employed and fixes disability at 41.77%

A bench of Justices Aravind Kumar and Sudhanshu Dhulia heard appeals by the claimant against a common judgment of the Karnataka High Court arising from an award of the Motor Accident Claims Tribunal, Bengaluru, concerning quantum of compensation and contributory negligence in a 2016 flyover collision.

The Court allowed the appeals in part and modified the compensation awarded to the claimant. It affirmed the monthly income at ₹9,500, held that self‑employed claimants were entitled to future prospects and added 40% towards future prospects, accepted the NIMHANS neuropsychologist’s assessment of functional disability at 41.77%, and recalculated loss of future earning capacity accordingly. The Court noted that the finding of 20% contributory negligence was not pressed by the claimant and recorded that concession. The total compensation was enhanced to ₹16,60,891, with interest at 6% per annum from the date of the claim petition until payment or deposit, and the insurer was directed to deposit the enhanced amount (after adjusting sums already paid) within six weeks before the tribunal for disbursement. The Court, in its reasoning, observed: Background The accident occurred on 19 November 2016 at about 6:00 a.m. on the Peenya flyover, Bengaluru, when the appellant’s Omni collided with a lorry allegedly parked in the middle of the flyover without indicators or reflective caution. The appellant, aged 38 and engaged in a tailoring business, suffered grievous head and body injuries including skull fractures, frontal haemorrhage, optic nerve trauma with resultant visual impairment, and bilateral wrist fractures. He received treatment at Premier Sanjeevini Hospital and Sparsh Hospital from 19 November to 5 December 2016.

The Tribunal fixed monthly income at ₹8,000, applied multiplier 15 (age 38), assessed disability at 35%, awarded total compensation of ₹17,01,140 and reduced it to ₹13,60,912 after applying 20% contributory negligence. The High Court revised monthly income to ₹9,500, omitted any addition for future prospects, retained disability at 35% and arrived at net compensation of ₹13,44,712 after 20% deduction. The claimant challenged exclusion of future prospects and the lower disability assessment; the insurer had appealed on other heads.

Relying on this Court’s precedents including Santosh Devi and Pranay Sethi, the Supreme Court held that self‑employed earners were entitled to future prospects and that the unchallenged NIMHANS assessment of 41.77% disability must be accepted. The Court recalculated loss of future earning capacity (annualised income after 40% addition × multiplier 15 × disability 41.77%) and maintained other heads awarded by the High Court. The enhanced total compensation of ₹20,76,114 was reduced by 20% contributory negligence to a net payable ₹16,60,891. The award carried 6% interest, and the insurer was directed to deposit the enhanced amount within six weeks; the Registry was ordered to forward a copy of the judgment to the Tribunal and the High Court Registrar General.

Case Details: Case No.: 2025 INSC 939 Case Title: Lokesh B v. Suryanarayana Raju Jaggaraju & Anr. Appearances: For the Petitioner(s): [Not indicated in the judgment] For the Respondent(s): [Not indicated in the judgment]