Authority: Supreme Court of India (Civil Appellate Jurisdiction)
Order Date: 30 July 2026
Case Overview
- Parties: Appellants Nitheesh Abraham & Anr vs. Respondent Liberty Videocon General Insurance Company Limited.
- Background: Motor accident on 26 September 2018 resulted in death of the appellants' mother. Driver of offending scooter was negligent; a valid insurance policy and driving licence existed, establishing insurer liability.
- Lower Tribunal: Motor Accidents Claims Tribunal, Ernakulam awarded compensation of Rs 8,34,900 based on monthly income of Rs 10,000.
- High Court of Kerala (Ernakulam) in MACA No. 574 of 2021 re‑fixed monthly income at Rs 12,500, applied a 10% multiplier for future prospects, deducted one‑third for personal expenses, and enhanced compensation by Rs 3,75,100 to a total of Rs 13,39,969.
- Appellants contended the deceased earned Rs 21,000 per month and that loss of consortium was not awarded.
Observations & Reasoning
- The Supreme Court held that the High Court correctly re‑fixed the income and applied the multiplier.
- However, the head of loss of consortium had not been adequately accounted for.
- In the interest of justice, the Court directed an additional sum of Rs 3,00,000 to be awarded under loss of consortium.
Final Outcome
- Total compensation payable to the appellants is enhanced to Rs 16,39,969 (Rupees Sixteen Lakhs Thirty‑Nine Thousand Nine Hundred Sixty‑Nine only), together with interest as awarded by the lower courts.
- The respondent insurer must pay the additional Rs 3,00,000 within four weeks from the date of the order.
- If payment is delayed beyond the stipulated period, the amount will attract interest at 6% per annum from the date of default until realization.
- The respondent is to remit the enhanced amount directly into the bank accounts of the appellants; counsel for the appellants must furnish bank account particulars to counsel for the respondent promptly.
- The period of delay, if any, in filing this appeal shall be excluded while computing interest.
- All pending applications, if any, are disposed of.
Topics: Motor Accident Compensation, Insurance Liability