Supreme Court Enhances Compensation to Rs 1.46 Crore for Youth With 100% Disability in Motor Accident

The Supreme Court has enhanced the compensation to Rs 1,46,80,160 for a 20-year-old youth who was left with 100% permanent disability after a car in which he was travelling overturned and fell into a valley due to an accident caused by another vehicle being driven in a rash and negligent manner.

A Bench of Justices Sanjay Karol, Augustine George Masih and Arun Palli recalculated the compensation by adding 40% towards future prospects, applying a multiplier of 18, and reassessing several other heads of compensation. Court held that the amounts awarded by the Motor Accident Claims Tribunal and the Kerala High Court did not constitute "just compensation."

The appeal was filed by Ramshad P in connection with a motor vehicle accident that took place on May 21, 2017.

What happened in the accident?

The appellant, then 20 years old, was travelling in a car which overturned into a valley after another vehicle was driven in a rash and negligent manner.

He suffered catastrophic spinal injuries, including C6-C7 spondylolisthesis and a cervical cord injury, resulting in 100% permanent disability. Court noted that he is permanently bedridden, is in a paraplegic condition, suffers from total incontinence, and is entirely dependent on others for his daily survival.

Why did the Supreme Court enhance the compensation?

The Motor Accident Claims Tribunal, Thrissur, had awarded Rs 64,71,050 with interest at 7.5% per annum from the date of the claim petition until realization.

On appeal, the Kerala High Court enhanced the compensation by Rs 28,52,400, taking the total award to Rs 93,23,450. It also increased the interest rate to 8% per annum and refixed the claimant's notional monthly income at Rs 13,000.

However, the Supreme Court found that the claimant's income had been assessed on the lower side.

"However, taking into account the minimum wages payable to skilled workmen in the State of Kerala as of the date of the accident (21.05.2017), we refix the notional monthly income at Rs 18,900. Herein we may extract the relevant portion of the decision rendered by the High Court of Kerala, acknowledging the minimum wages payable to a skilled worker in the year 2018, which were also prevalent with effect from 28.04.2017, prior to the accident in question," the Bench observed.

Court accordingly refixed the notional monthly income at Rs 18,900 and held that the compensation for loss of future earnings had to be recalculated by retaining the 40% addition towards future prospects and applying the multiplier of 18.

The Bench further observed, "While the High Court enhanced the compensation to Rs 93,23,450, we find the assessment of several heads remains inadequate to meet the standard of 'just compensation' for a claimant in such a state of perpetual suffering."

Court also noted that the Tribunal had fastened liability solely on New India Assurance Co. Ltd. to indemnify the owner of the vehicle, and since that finding had not been challenged, it had attained finality.

Refixing the total compensation at Rs 1,46,80,160, the Supreme Court directed the insurer to deposit the enhanced amount along with 8% interest per annum from the date of the claim petition until realization within eight weeks.

The appeal was accordingly allowed.

Case Title: Ramshad P vs. Afzal & Ors

Bench: Justices Sanjay Karol, Augustine George Masih and Arun Palli

Date of Judgment: June 02, 2026