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Home Accident Law

Supreme Court Enhances Compensation in Motor Accident Claim

Dominick Rios by Dominick Rios
August 28, 2025
in Accident Law
0

The bench of Justices Indu Malhotra and Sanjiv Khanna on 16th August 2019 in Sunita Tokas & Anr. Versus New India Insurance Co. Ltd. & Anr reiterated that age of deceased is the fabric in deciding enhancement of compensation granted through Motor Accident Claims Tribunal, Patiala House Courts, New Delhi.

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The son of the Appellants, viz. Pradeep Tokas, 21 years was a student who became a trained swimmer and had received prizes on State­stage occasions. On 11.05.2004, he met with an accident with a truck simultaneously as sitting on a two-wheeler. The truck turned onto the street in the middle of the street with no indicator lighting fixtures. The two­wheeler dashed against the stationary truck, and each Pradeep Tokas and the driver died instantly.

Supreme Court Enhances Compensation in Motor Accident Claim 1

The Appellants filed the Claim Petition before the MACT, Patiala House Courts, New Delhi, claiming compensation for the loss of life of their son. The MACT vide Award dated 25.05.2009 granted compensation of Rs. 14,87, one hundred forty/­ along with interest @7% p.a. To the Appellant­Claimants. The Aggrieved through the aforesaid Award Appellants filed before the Delhi High Court for enhancement of reimbursement. The Respondent – Insurance Company also filed a cross­attraction for reduction of reimbursement. The High Court reduced the quantity of reimbursement offered through the MACT to Rs. Nine,25,000/­.

Aggrieved with the aid of the aforesaid Judgment, the Appellant–Claimants filed the prevailing Civil Appeal to enhance the compensation awarded. The court depended on Amrit Bhanu Shali & Ors. V. National Insurance Co., wherein the apex court held that the choice of the multiplier is primarily based on the age of the deceased, and not based on the dependents. There can be several dependents of the deceased, whose ages could vary. Therefore, the age of the dependents might have no nexus with the computation of compensation. In the prevailing case, because the deceased became 21 years vintage, the Multiplier of 18 became applicable as consistent with the table set out within the Sarla Verma case. The court stated the High Court had erred in reducing the notional earnings of the deceased from Rs. 16,246/­ as provided using the MACT to Rs. 7,500/. The Court held that the deceased changed into a skilled swimmer who had won several State­stage competitions. His mother runs a Swimming/Gym Centre at Air Force Station (Central School), Gurgaon. Therefore, in reality, the deceased had the potential to earn a living by using his capabilities.

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