The Supreme Court of India, in a significant ruling, set aside the Madras High Court’s decision that reduced the compensation for a 21-year-old accident victim who suffered 100% permanent disability. The Court restored the compensation granted by the Motor Accidents Claims Tribunal (MACT) and further enhanced the amount, recognizing the lifelong medical needs and hardships of the claimant.
Case Background
The case involves an accident dated July 3, 2011, when the claimant, Kavin, was travelling in an Omni bus from Coimbatore to Chennai. The bus, driven rashly by Mr. Balaji, collided with a tamarind tree, leaving several passengers injured. Kavin, aged 21 and pursuing higher studies, suffered severe injuries resulting in complete disability, confining him to a vegetative state.
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He approached the Claims Tribunal under Section 166 of the Motor Vehicles Act, 1988, seeking ₹1 crore as compensation. After detailed consideration, the Tribunal awarded ₹67.83 lakh under various heads, including medical expenses, future income loss, future medical care, attendant charges, and family suffering.
The award was challenged both by the insurance company and the claimant. The Madras High Court (2022) upheld the findings on negligence and liability but reduced the total compensation to ₹48.83 lakh, cutting down amounts granted for:
- Future medical expenses,
- Attendant charges,
- Pain and suffering of family members, and
- Permanent disability.
This reduction led to the claimant’s appeal before the Supreme Court.
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Justice Atul S. Chandurkar and Justice N.V. Anjaria held that the High Court erred in reducing the compensation without valid reasons. The Court emphasized that a 100% disabled claimant requires lifelong care and financial support.
Key points from the ruling:
- Future Medical Expenses: Enhanced to ₹15 lakh considering lifelong treatment.
- Loss of Enjoyment of Life & Amenities: Restored at ₹3 lakh.
- Attendant Charges: Increased to ₹10 lakh, as the claimant would need assistance for his entire life.
- Family Pain & Suffering: Restored at ₹3 lakh, following earlier judicial precedents.
- Permanent Disability: Increased to ₹5 lakh, separate from loss of income.
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“Considering the permanent disability suffered by the claimant, he would require medical care and assistance for his entire life. The reduction by the High Court was unjustified.” – Supreme Court
The Supreme Court set aside the High Court’s reduction and held the claimant entitled to ₹82.83 lakh as compensation, with 7.5% annual interest, to be paid within four weeks. The appeals were allowed, and parties were directed to bear their own costs.
Case Title: Kavin vs. P. Sreemani Devi & Others
Case Type: Civil Appeal Nos. 3132-3133 of 2023
Date of Judgment: 22 August 2025
