Supreme Court on Motor Accident Compensation: Enhanced Relief for Minor Victim with 77.1% Disability.

Headnote:

The Supreme Court enhanced the compensation awarded to a 14-year-old accident victim suffering 77.1% permanent disability from ₹7.48 lakh (including High Court enhancement) to ₹15.13 lakh. The Court observed that the High Court had undervalued certain heads of compensation such as medical expenses, pain and suffering, loss of marriage prospects, and attendant charges. Relying on precedents including Master Mallikarjun v. National Insurance Co. Ltd. and Pranay Sethi v. National Insurance Co. Ltd., the Court recalculated the compensation using appropriate multipliers and principles applicable to child victims.

Background:

1. The appellant, a 14-year-old student injured in a motor accident on 19 April 2002, sustained 77.1% permanent disability.
2. The Motor Accident Claims Tribunal (MACT), Thrissur awarded ₹1,73,000/- with 7% interest under Section 166 of the Motor Vehicles Act, 1988.
3. The Kerala High Court, in appeal (MACA No. 89/2009), enhanced the compensation by ₹5,75,883/- with 8% interest, but the appellant sought further enhancement before the Supreme Court.
4. The lorry involved (No. KRR-6987) was found to be negligently driven; liability was admitted by the insurer.

Court’s Observations:

1. The Court emphasized that compensation for child victims must reflect the loss of potential, lifelong suffering, and deprivation of amenities.
2. Following Master Mallikarjun (2014) 14 SCC 396 and Pranay Sethi (2017) 16 SCC 680, the Court held that the High Court rightly used a multiplier of 15 and added 40% towards future prospects.
3. The High Court erred in restricting medical expenses and loss of marriage prospects.
4. The Court further relied on Kajal v. Jagdish Chand (2020) 4 SCC 413, Sidram v. United India Insurance Ltd. (2023) 3 SCC 439, and K.S. Muralidhar v. R. Subbulakshmi (2024 SCC OnLine SC 3385)* to enhance various heads of compensation.

Legal Provisions & Precedents Discussed:

1. Section 166, Motor Vehicles Act, 1988 – Application for compensation.
2. Master Mallikarjun v. National Insurance Co. Ltd., (2014) 14 SCC 396 – Principles for compensation to children with disability.
3. National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680 – Addition for future prospects.
4. Kajal v. Jagdish Chand, (2020) 4 SCC 413 – Compensation for loss of marriage prospects.
5. Sidram v. United India Insurance Ltd., (2023) 3 SCC 439 – Special diet and transportation.
6. K.S. Muralidhar v. R. Subbulakshmi, 2024 SCC OnLine SC 3385 – Pain and suffering.

Final Order:

1. Appeal allowed in part; High Court judgment modified.
2. Total compensation fixed at ₹15,13,337/-.
3. Respondent No. 3 (Insurance Company) directed to deposit the additional compensation with 8% interest in the appellant’s bank account within 8 weeks.
4. Proof of payment to be submitted to the Tribunal within one week of deposit.

Citation: 2025 INSC 1303

Case: Riyas v. P.N. Shinosh & Anr.

Court: Supreme Court of India

Coram: Justice N.V. Anjaria & Justice K. Vinod Chandran

Date of Decision: 10 November 2025

Civil Appeal No.: 6544 of 2024