SC Raises Compensation to Rs. 85 Lakh for 24-Year-Old Disabled in 2015 Road Accident

The Supreme Court has significantly enhanced the compensation for a 24-year-old woman who suffered life-altering injuries in a 2015 road accident, raising the amount from nearly Rs 36 lakh to Rs 85.09 lakh, holding that the courts below had inadequately assessed several crucial components of her loss.

Court said the object of just compensation in motor accident cases is to restore, as far as possible, the claimant-appellants to a position where the accident would not have taken place and they would not be negatively affected in life. 

Reshma, the claimant, was hit by a vehicle on 23 February 2015 while travelling in Belagavi, resulting in severe injuries that left her with 100% functional disability, comprising 85% mental disability and 45% disability to her lower left limb. The accident occurred in broad daylight and was attributed to the rash and negligent driving of the vehicle’s driver. The vehicle was insured with New India Assurance Company Ltd., and liability for compensation was undisputed.

The Motor Accident Claims Tribunal initially awarded Rs 30.24 lakh in December 2017, determining her monthly income at Rs 10,000 and applying the standard multiplier method. Nearly six years later, the Karnataka High Court (Dharwad Bench) enhanced the compensation to Rs 35.86 lakh, reassessing income at Rs 9,000 per month and increasing future prospects to 40%. Dissatisfied with the revised award, Reshma approached the Supreme Court seeking a more realistic assessment of her long-term needs, including attendant care, loss of marital prospects, and future medical expenses. 

A bench of Justices Sanjay Karol and Nongmeikapam Kotiswar Singh observed that while the courts below had largely assessed her income correctly, they had “severely underestimated” the compensation for her lifelong dependency and loss of autonomy. Emphasising the irreversible impact of the accident, the bench noted that Reshma’s entire life had been “turned upside down,” with her dreams, aspirations, and even the possibility of a “happy marital life” permanently altered.

Court referred to earlier decisions to revise the compensation under several heads. Referring to Kajal v. Jagdish Chand, where compensation was granted for loss of marriage prospects of a minor victim, the bench awarded Rs 4 lakh to Reshma under the same head, noting that her injury was equally devastating, if not more. It also faulted the earlier courts for granting inadequate attendant charges, given her 24-hour dependency. Following the precedent in Abhimanyu Pratap Singh v. Namita Sekhon, court approved the cost of two full-time attendants, calculating the amount at Rs 43.20 lakh.

The bench further enhanced the compensation for “pain and suffering” to Rs 5 lakh, observing that the earlier award of Rs 2 lakh did not reflect the magnitude of her trauma and lifelong incapacity. Additional sums were awarded for medical expenses, loss of amenities, future medical care, conveyance and incidental charges. With all components added, the total compensation payable to the claimant now stands at Rs 85,09,369, more than double the High Court’s award.

Court also directed the insurer to remit the amount directly into Reshma’s bank account by 30 November 2025, asking her counsel to immediately furnish the relevant account details. Interest on the enhanced compensation will be governed by the terms set by the High Court in its 2024 judgment.

Calling the case a stark reminder of the limitations of monetary compensation, the Supreme Court observed that while no financial amount can restore a young woman’s lost opportunities, courts must make every effort to ensure that victims of negligence are awarded just and meaningful relief. 

Case Title: Reshma Vs Dajiba Krishna Lad & Anr

Judgment Date: October 14, 2025

Bench: Justices Sanjay Karol and Nongmeikapam Kotiswar Singh