Punjab & Haryana High Court Enhances Compensation in Motor Accident Injury Case; Reassesses Income, Awards Higher Amounts for Pain, Disability and Future Medical Needs

Case Name: Rakesh Kumar v. Sham Lal and Others
Date of Judgment: 11 December 2025
Citation: FAO-1462-2023
Bench: Hon’ble Mrs. Justice Sudeepti Sharma

Held: The Punjab and Haryana High Court allowed the appeal seeking enhancement of compensation and held that the Motor Accident Claims Tribunal had awarded inadequate compensation by mechanically adopting minimum wages and by granting meagre amounts under non-pecuniary heads. The Court held that the claimant’s educational background, complete functional disability, lifelong dependence, and future medical requirements warranted substantial enhancement to ensure just compensation under Section 166 of the Motor Vehicles Act.

Summary: The appeal arose from an award passed by the Motor Accident Claims Tribunal, Chandigarh, granting compensation of ₹40,53,617 to the claimant for grievous injuries suffered in a motor vehicle accident. The claimant, aged 19 years at the time of the accident, suffered 100% permanent disability resulting in paralysis of the lower limbs, loss of bladder and bowel control, and a vegetative existence requiring continuous assistance.

The High Court noted that the Tribunal erred in assessing the claimant’s income solely on the basis of minimum wages without considering his educational background and future earning potential. Relying on recent Supreme Court precedents, the Court reassessed the monthly income at ₹15,000 and applied future prospects. The Court further found that the compensation awarded for pain and suffering, attendant charges, future medical expenses, loss of amenities, and loss of marriage prospects was grossly inadequate.

The Court took note of extensive medical evidence establishing complete dependency, need for attendants, specialised equipment, and recurring medical care. It emphasized that permanent disability entails not only loss of income but also loss of dignity, autonomy, companionship, and normal human life, which must be adequately compensated.

Applying settled principles on multiplier, future prospects, and non-pecuniary damages, the Court recalculated the compensation under multiple heads, including pain and suffering, attendant charges, future medical expenses, loss of marriage prospects, transportation, special diet, and loss of amenities of life.

Decision: The appeal was allowed. The impugned award was modified, and total compensation was enhanced to ₹75,20,817. After deducting the amount already awarded by the Tribunal, the claimant was held entitled to an enhanced compensation of ₹34,67,200, along with interest at 9% per annum from the date of filing of the claim petition till realisation. The Insurance Company was directed to deposit the enhanced amount within two months.