The Supreme Court has significantly increased the compensation awarded to an accident victim in Rajasthan, raising the amount from Rs 7.76 lakh to Rs 56.83 lakh. This ruling came in the case of a 14-year-old who was left with permanent disabilities following a motorcycle accident in 2016.
A bench comprising Justices J K Maheshwari and Atul S Chandurkar considered an appeal from Hansraj, challenging the Rajasthan High Court’s decision from April 9, 2024. The High Court had only partially raised the compensation granted by the Motor Accident Claims Tribunal (MACT), adjusting it from Rs 7,76,543 to Rs 12,17,543.
Feeling that the adjustment was insufficient, the claimant appealed to the Supreme Court, seeking a more considerable compensation increase. On May 6, the Supreme Court acknowledged the need for a higher compensation amount, noting that the appellant, who was just fourteen at the time of the accident, had suffered 100% permanent disability and would require continuous assistance from two attendants.
The incident took place on November 8, 2016, when Hansraj was riding as a passenger on a motorcycle that collided with a tractor trolley due to negligent driving. The young boy sustained severe injuries to his neck, head, and spine, resulting in multiple fractures. The Court highlighted that he spent nearly 203 days in the hospital and ultimately ended up with complete permanent disability from the incident.
Hansraj subsequently sought compensation of Rs 22.45 lakh from the motorcycle’s driver, owner, and insurer under Section 166 of the Motor Vehicles Act, 1988, through the MACT. Understanding the long-term care needs of the claimant, the Supreme Court mandated that 75% of the awarded amount for attendant costs be placed in a fixed deposit, ensuring that the funds would generate interest to cover future expenses.
The Court emphasized that because Hansraj would require lifelong assistance from two attendants, part of the compensation should be invested to accrue interest for ongoing costs, including potential increases in attendant fees. The Court specified that Rs 1.5 lakh should be released annually from the deposited funds, while 25% of the attendant charges and overall compensation would be made available to the claimant immediately.
By granting the appeal, the Supreme Court revised the Rajasthan High Court’s ruling and instructed that any compensation already disbursed to the claimant be accounted for in the enhanced amount.
