Landmark Judgment In Motor Accident Claims: Supreme Court Enhances Compensation for Amputated Hand

Supreme Court in case of Jitendra Vs Sadiya & Ors addresses the calculation of compensation award in a motor vehicle accident. In the present case due to the accident the claimant's hand was amputated and the award was passed by the Motor Accident Claims Tribunal. The award passed by the tribunal was challeged in the High Court and the compensation was enhanced, however, not satifistied by the enhancement the present appeal arose.

The High Court enhanced the compensation awarded by the Motor Accident Claims Tribunal (MACT), but the claimant remained dissatisfied. The issue before the Apex Court was whether the compensation awarded was adequate, specifically concerning the assessment of disability and income.

In its analysis the Supreme Court considered the minimum wage prevalent in the area for unskilled workers, which was Rs. 6,850/-, as a guiding factor for evaluating the claimant's monthly income.

Referencing Gurpreet Kaur and Ors. vs United India Insurance Company Ltd. and Ors (Click to Download)., the Supreme Court noted that notifications under the Minimum Wages Act can guide income evaluation when there's a lack of income evidence.

The judgment recognized that the amputation of the claimant's hand significantly hampered his ability to work as a labourer.

The Court deemed it appropriate to increase the percentage of functional disability to 80%.

The Court referenced several prior judgments to determine amounts for specific compensation heads, including:

National Insurance Co. Ltd. vs Pranay Sethi (Click to Download) ----regarding monthly income and future prospects.

Kajal vs Jagdish Chand (Click to Download) ----regarding medical expenses.

Sidram vs Divisional Manager, United India Insurance Ltd. (Click to Download) ----regarding special diet and transportation.

K.S. Muralidhar vs R. Subbulakshmi and Anr. (Click to Download) ---- regarding pain and suffering.

Raj Kumar vs Ajay Kumar (Click to Download) ---- regarding loss of income during treatment.

Thus, the Supreme Court allowed the appeal and modified the compensation to a total of Rs. 20,55,452. This included considerations for monthly income, future prospects, permanent disability, medical expenses, attendant charges, special diet and transportation, pain and suffering, loss of income during treatment and the cost of an artificial hand.

Coram: Justice Sanjay Karol and Justice Prashant Kumar Mishra
Case: Jitendra Vs Sadiya & Ors
Judgment Date: 07-02-2025