A human-centric approach of SC on Motor Accident Compensation
Judgment dated of the Supreme Court in Civil Appeal No.13542 of 2026 of Sunil Kumar (total disable Rep. by wife) Vs. Iffco Tokio General Insurance Company Ltd with connected civil appeal
The claim petitions arose out of one single accident, which took place on 22.10.2016 at about 7:40 in the morning. The appellant in the first case-Sunil Kumar was a pillion rider, whereas the appellant in the second case named Sreejith K.S. was driving the scooter bearing Registration No. KL-64/C-6493, both going through Thrissur-Kodara public road. When they reached near Paliyekkara toll plaza, all of a sudden, another scooter bearing Registration No. KL-45/M-9130 which was driven by original respondent no.1 stated to have come in a rash and negligent manner and collided with the scooter of the appellants. The appellants were thrown on the ground and sustained serious injuries. The appellant – claimant in the first case, who was a pillion rider claimed Rs.50,00,000/-, whereas the driver of the scooter – the appellant in the second case claimed Rs. 15,00,000/- towards compensation for the injuries sustained by them.
As per the disability certificate Exhibit-X1 issued by the Medical Board, looking at the injuries suffered, the permanent disability was fixed at 75.5%. The contention on the part of the appellant that functional disability was required to be taken at 100% was not accepted by the Tribunal. The High Court did not touch the said aspect and maintained the disability at 75.5% as stated by the Medical Board.
The Tribunal awarded the compensation of Rs.19,91,954/-, whereas, the High Court enhanced to Rs.36,22,644/-.
Having regard to the nature of injuries suffered by the appellant in the first case and the resultant effect on his body and activity, it would be reasonable to take the permanent functional disability to the extent of 100%, and the amount towards loss of earning capacity would be calculated thus- Rs. 15,000/- monthly income multiplied by 12 which brings total annual income of Rs. 1,80,000/-. Since the permanent disability is to the extent of 100%, which will come to Rs. 1,80,000/-, further multiplied by 25% towards ‘future prospects, which comes to Rs. 45,000/ , therefore, Rs. 1,80,000/- + 45,000/-, total of which Rs. 2,25,000/-, multiplied by multiplier figure of 14, brings total amount of Rs. 31,50,000/- to be awarded towards ‘loss of earning capacity’ on the basis of 25% future prospects and 100% disability.
The Supreme Court enhanced the compensation to Rs.77,84,394/-.
