Supreme Court Awards Enhanced Compensation In Motor Accident Case
While observing that an unskilled worker would be entitled to claim a monthly income of Rs 10,000, the Supreme Court has awarded over Rs 35 lakh as compensation to a man left bedridden after a motor accident. The claimant, in this case, had already asserted an annual income of Rs 9,000.
The appellant worker had approached the Apex Court seeking enhanced compensation.
The Division Bench of Justice Sudhanshu Dhulia and Justice K. Vinod Chandran said, “A Constitution Bench in National Insurance Company Limited vs. Pranay Sethi and Others found that there would be an incremental increase in the income which according to us would be reasonable if fixed at Rs.500/- per month for every successive year. In the present case, the accident occurred in the year 2015, 11 years after 2004 and going by the principles stated in the afore-cited decisions the appellant, an unskilled worker would be entitled to claim monthly income of Rs.10,000.”
Factual Background
The appellant, a young man of 25 years, became completely bedridden due to an accident caused when he was travelling in the truck of his employer, which crashed with another vehicle. The appellant before the Tribunal claimed rashness and negligence on the driver of the truck in which he was travelling. The claimant asserted an annual income of Rs 9,000 and claimed a total of Rs 68,44,000 as compensation. The Tribunal accepted the claim and awarded an amount of Rs16,00,000 on the premise that the interest earned from the said amount would look after the claimant in future. The High Court, in appeal, granted a consolidated amount of Rs 25,83,600. Aggrieved thereby, the appellant approached the Apex Court.
Reasoning
The Apex Court noted that in Ramachandrappa vs. Manager, Royal Sundaram Alliance Insurance Company Limited (2011), it had determined an income of Rs.4,500 per month in the year 2004 for a coolie. The Bench affirmed that an unskilled worker would be entitled to claim a monthly income of Rs 10,000.
Considering the fact that the claimant had asserted an income of Rs 9,000 which could be safely adopted, the Bench granted a total amount of Rs 27,21,600 towards loss of future income.
Thus, including the medical expenses and the amount for pain and suffering, loss of amenities etc., the Bench awarded an enhanced compensation of Rs 35,91,600 to the appellant. “The above amounts, after deducting the amounts already paid, shall be disbursed with 8% interest per annum as determined by the Tribunal within a period of two months”, it concluded.
Cause Title: Shaikh Sadik Shaikh Rafique v. Reliance General Insurance Company Limited & Ors. (Neutral Citation: 2025 INSC 673)
