The Supreme Court held that compensation for permanent disability is a distinct head from loss of income and cannot be denied merely because the latter is awarded. It further ruled that future medical and attendant charges must account for the victim’s full life expectancy, not a restricted period. The Court also reinstated compensation for loss of enjoyment of life and family’s pain and suffering, emphasizing these are legitimate and independent heads of claim.
Facts Of The Case:
On July 3, 2011, the appellant, Kavin, a 21-year-old arts student, was travelling as a passenger in an Omni bus from Coimbatore to Chennai. At around 10:15 PM, the bus, driven rashly and negligently by its driver, dashed against a tamarind tree on the left side of the road. The accident resulted in grievous injuries to numerous passengers. Kavin sustained severe injuries that led to a 100% permanent disability, rendering him vegetative and requiring prolonged medical treatment. He filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs. 1 crore. The Motor Accidents Claims Tribunal awarded him Rs. 67,83,866/- under various heads, including future medical expenses and attendant charges. However, the Madras High Court, in an appeal, reduced this amount by Rs. 19 lakhs, setting aside compensation for permanent disability, loss of enjoyment of life, and family’s pain and suffering, while also reducing the amounts for future medical and attendant charges. Aggrieved by this reduction, Kavin appealed to the Supreme Court, challenging the High Court’s reasoning that compensation for permanent disability was inadmissible since loss of income was already granted.
Procedural History:
The case originated with the filing of M.C.O.P. No.962 of 2011 before the Motor Accidents Claims Tribunal by the appellant-claimant. The Tribunal, after a joint trial with other claims from the same accident, awarded compensation of Rs. 67,83,866/-. Dissatisfied with this award, both parties appealed to the Madras High Court; the claimant sought enhancement in C.M.A. No.902 of 2020, while the insurance company challenged the quantum in C.M.A. No.677 of 2021. The Division Bench of the High Court, in its judgment dated August 16, 2022, partly allowed the insurance company’s appeal and dismissed the claimant’s. It affirmed the findings on negligence and liability but reduced the total compensation to Rs. 48,83,866/- by setting aside certain heads and reducing others. This reduction prompted the claimant to file the present Civil Appeal Nos. 3132-3133 of 2023 before the Supreme Court, which ultimately set aside the High Court’s modifications and enhanced the compensation beyond the Tribunal’s original award.
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Court Observation:
The Supreme Court made significant observations on the principles governing compensation in motor accident claims. It firmly held that the grant of compensation for loss of future income is a distinct and separate head from compensation for permanent disability, and awarding one does not preclude the other, especially in a case of 100% disability. The Court criticized the High Court for reducing future medical and attendant charges by restricting them to 25 years, observing that such expenses must be calculated considering the victim’s entire life expectancy, given the claimant was only 21 years old at the time of the accident. Furthermore, the Court held that compensation for non-pecuniary damages like ‘loss of enjoyment of life and amenities’ and ‘pain and suffering of family members’ are legitimate and essential heads of claim. It rebuked the High Court for setting aside these amounts without assigning any valid reason and for ignoring a binding precedent from its own court, emphasizing that a co-ordinate bench cannot lightly disregard an earlier decision.
Final Decision & Judgement:
The Supreme Court allowed the appeals filed by the claimant. It set aside the impugned judgment of the Madras High Court, holding that the reduction of compensation by Rs. 19 lakhs was unsustainable. The Court restored the compensation granted by the Claims Tribunal under the heads of loss of enjoyment of life and amenities (Rs. 3 lakhs) and pain and suffering of family members (Rs. 3 lakhs). Furthermore, it significantly enhanced the compensation awarded by the Tribunal: the amount for future medical expenses was increased from Rs. 9 lakhs to Rs. 15 lakhs, attendant charges were raised from Rs. 6 lakhs to Rs. 10 lakhs, and a sum of Rs. 5 lakhs was granted under the head of permanent disability, which the High Court had erroneously set aside. Consequently, the total compensation payable to the appellant was enhanced to Rs. 82,83,866. The insurance company was directed to pay the unpaid amount within four weeks, along with interest at 7.5% per annum from the date of the Tribunal’s award.
Case Details:
Case Title: Kavin vs. P. Sreemani Devi & Ors. Citation: 2025 INSC 1028 Appeal Number: Civil Appeal Nos. 3132-3133 of 2023 Date of Judgement: August 22, 2025 Judges/Justice Name: Justice N. V. Anjaria and Justice Atul S. Chandurkar
Download The Judgement Here