Supreme Court, P&H High Court Sharply Raise Motor-Accident Compensation

Overview

• The Supreme Court raised a 14-year-old Rajasthan victim’s compensation to ₹56.83 lakh after finding earlier awards far too low for injuries that caused 100% permanent disability.
• Using minimum wages for a skilled worker in 2016, the Court fixed notional income at ₹5,800 a month, added 40% for future prospects, and applied a multiplier of 18 to compute ₹17.53 lakh for loss of income.
• The Bench awarded ₹21.60 lakh for two lifelong attendants, set interest at 6% from the claim’s filing, and directed that 75% of the attendant-charge amount be placed in a fixed deposit to cover future care costs.
• In a separate Chandigarh death case, the Punjab & Haryana High Court lifted compensation from ₹5.76 lakh to ₹46.46 lakh, calling a ₹6,000 monthly income assumption unrealistic and fixing a conservative ₹30,000, with 9% interest and a two‑month deposit timeline.
• Both courts relied on benchmarks from Sarla Verma and Pranay Sethi, expanding recognized heads such as pain and suffering, future medical needs, and loss of marriage prospects, which signals tighter checks on undervalued claims.