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Shankar Dutt v. United India Insurance Co. Ltd.

Civil Appeal · 2026 INSC 656Decided 24 Jun 2026
C.A. No.-008714-008714 - 2026 (Arising out of SLP(C) No. 19227/2021)
Justice Ujjal Bhuyan · Justice N.V. Anjaria · Justice Sandeep Mehta

Background

The appellant, a 38-year-old carpenter, suffered severe injuries in a 2004 motorcycle accident when a jeep travelling on the wrong side of the road hit him, ultimately requiring his right leg to be amputated above the knee. The Motor Accident Claims Tribunal initially awarded him about Rs.4,77,823/- with 4% interest; on appeal, the Uttarakhand High Court enhanced this to Rs.11,51,423/- with 6% interest. The appellant approached the Supreme Court seeking further enhancement, arguing the compensation still did not adequately account for his permanent disability and future needs.

Decision Breakdown

The Supreme Court undertook a fresh, head-by-head recalculation of the compensation. It recalculated future income loss using the appellant's actual monthly income, added 40% for future prospects, and applied a multiplier of 15, while also awarding substantial additional amounts for future medical expenses (including the recurring cost of replacing a prosthetic leg, Rs.10,00,000/-), pain and suffering, loss of amenities, loss of income during hospitalisation, attendant charges, nutrition, medical expenses, and transportation. The Court arrived at a total just and fair compensation of Rs.35,95,923/-, with 6% annual interest from the date the claim petition was filed. It directed the insurance company to deposit the additional balance amount (about Rs.24,44,500/-) within six weeks, to be disbursed to the appellant's bank account after verification.

Lesson Learnt

Compensation in serious permanent-disability motor accident cases must account comprehensively for future needs (not just lost income, but recurring costs like prosthetic replacement, attendant assistance, and pain and suffering) and victims can seek enhancement all the way up to the Supreme Court if lower awards understate these long-term costs.

Official source (sci.gov.in)View Judgment (PDF)

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