The Rajasthan High Court enhanced the compensation awarded to the appellant, a 21-year-old engineering student, to ₹1,90,68,153. The appellant had suffered 100% permanent disability of the lower body after being hit by a rashly driven vehicle while walking near the campus of the National Institute of Technology (NIT), Uttarakhand, in 2018. The judgment was delivered by Justice Ganesh Ram Meena in a batch of appeals filed both by the claimant and the insurer, Tata AIG General Insurance Co. Ltd.
Originally, the Motor Accident Claims Tribunal (MACT), Dausa had awarded compensation of ₹1.49 crore. While the claimant sought enhancement citing inadequate consideration of her future prospects, the insurance company challenged the award, questioning the calculation of income, future medical expenses, and duplication of certain heads. The Court adjudicated the appeals jointly and undertook a detailed reassessment of the claimant’s entitlements.
The Court took judicial notice of the claimant’s academic background and evidence on record, including placement packages of her classmates, to fix her notional income at ₹5,00,000 per annum. Applying a 40% enhancement towards future prospects and a multiplier of 18, the Court awarded ₹1.26 crore under the head of loss of future earning capacity. It noted that engineering as a profession often demands physical mobility, which was now beyond the claimant’s reach due to her paralysis.
Justice Meena further enhanced the compensation under non-pecuniary heads. The amount for pain, suffering, and loss of amenities was increased from ₹15,00,000 to ₹25,00,000, taking into account the physical, emotional, and social trauma faced by the claimant. Observing that her prospects of marriage and social integration had been severely impaired, the Court also increased the award under the head of loss of marriage prospects from ₹3,00,000 to ₹5,00,000.
The Court awarded ₹21,60,000 under the head of attendant charges, calculating the cost of full-time care at ₹10,000 per month over an 18-year period. Additionally, ₹8,00,000 was awarded for future medical expenses and conveyance. Other sums were granted towards special diet, medical bills, and transportation, with the total enhanced compensation amounting to ₹1,90,68,153.
The Court emphasized that just compensation under Section 168 of the Motor Vehicles Act must reflect not only the financial loss but also the permanent deprivation of dignity, autonomy, and opportunity. Relying on Supreme Court precedents such as Kajal v. Jagdish Chand, (2020) 4 SCC 413 and Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, the Court underlined that compensation must be life-affirming and rehabilitative, not merely compensatory.
The Court directed that 50% of the enhanced amount be kept in fixed deposit for seven years, and the remaining 50% be released to the claimant. Interest accrued on the enhanced compensation was also to be kept in a fixed deposit for ten years.
Appearances in the case
Appellant: Mr. Ritesh Jain with Mr. Ramdeo Arya for claimant/appellant
Respondent: Mr. Rizwan Ahmed for non-claimant/ respondent No.3
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