Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 24 June 2026

Case Overview

  • Parties: Appellant – Shankar Dutt (carpenter, aged 38); Respondents – United India Insurance Co. Ltd., National Insurance Company Ltd., and the driver‑owner of the offending Jeep.
  • Accident: On 09‑Nov‑2004, at ~8 pm, a Jeep (Reg. No. UP‑06‑0915) entered the wrong side of the road near Kotdwar and collided with Dutt’s motorcycle (Reg. No. UA‑12‑5725). Dutt sustained grievous injuries, leading to above‑knee amputation of his right leg.
  • Medical Treatment: Admitted to Government Hospital, Kotdwar; shifted to Himalayan Hospital, Jolly Grant, Dehradun on 10‑Nov‑2004. Treated until 22‑Dec‑2004 (43 days). Post‑amputation, Dutt became completely disabled for his carpentry work.
  • Initial Claim: Dutt filed a claim for Rs 18,00,000 before the Motor Accident Claims Tribunal‑cum‑Additional District Judge, Kotdwar. Respondents (insurance companies and driver) contested.
  • Claims Tribunal Award (02‑Mar‑2012): Total compensation Rs 4,77,823 with 4% p.a. interest. Breakdown: Monthly income Rs 3,000, multiplier 17, 70% permanent disability, medical expenses Rs 44,423, etc.
  • High Court of Uttarakhand (19‑Dec‑2019): Enhanced compensation to Rs 11,51,423 with 6% p.a. interest. Revised monthly income to Rs 5,000, multiplier reduced to 15, added Rs 25,000 for future nourishment and Rs 1,00,000 for future medical expenses.
  • Appellant’s Submissions: Argued that monthly income should be at least Rs 8,000‑10,000 (citing similar cases), that functional disability should be 100% (not 70%), sought amounts for artificial limb, attendant charges (Rs 2,00,000), transportation, loss of income during treatment, higher multiplier (16), and higher pain‑and‑suffering award (Rs 5,00,000).
  • Respondents’ Submissions: United India Insurance defended Rs 5,000 monthly income as based on Uttarakhand minimum wages (Dec‑2005) and cited Chameli Devi; maintained 70% disability as sufficient; National Insurance Company Ltd. simply contested without additional arguments.
  • Legal Principles Cited: Compensation must cover pain & suffering, loss of income (present & future), loss of amenities, medical expenses, loss of expectation of life (para 5.1). Multiplier guidelines from Sarla Verma vs. Delhi Transport Corp. (age‑based multiplier 15 for 36‑40 years). Functional vs. medical disability distinction (para 5.6). Precedents on functional disability being 100% for amputees (S. Ettiappan, R. Halle).
  • Court’s Assessment:
  • Notional monthly income fixed at Rs 9,000 (higher than High Court’s Rs 5,000) reflecting skilled carpenter earnings.
  • Future prospects added at 40% of yearly income.
  • Multiplier retained at 15 (appropriate for age 38).
  • Disability treated as 100% for functional loss.
  • Calculation of loss of future earnings: Monthly 9,000 ×12 = Rs 1,08,000; +40% = Rs 1,51,200; ×15 = Rs 22,68,000; ×100% = Rs 22,68,000.
  • Additional heads awarded:
  • Prosthetic leg & maintenance: Rs 10,00,000 (based on cost >Rs 2,60,000, replacement every ~6 years, half‑yearly repairs Rs 15‑20k).
  • Pain, shock & suffering: Rs 1,00,000 (maintained from High Court).
  • Loss of amenities: Rs 50,000.
  • Loss of income during laid‑up period (43 days ≈1.5 months): Rs 9,000 ×1.5 = Rs 13,500.
  • Attendant charges: Rs 50,000.
  • Nutrition & incidental charges: Rs 40,000.
  • Medical expenses (actual): Rs 44,423.
  • Transportation charges: Rs 30,000 (reduced from claimed Rs 50,000).
  • Total Compensation: Summing all heads yields Rs 35,95,923.
  • Interest: 6% p.a. from date of filing of claim petition till actual payment.

Final Outcome

  • The appeal is allowed. United India Insurance Co. Ltd. is directed to pay the balance additional amount of Rs 24,44,500 (Rs 35,95,923 – Rs 11,51,423) with 6% interest, within six weeks, through the Claims Tribunal, which will transfer the amount to the appellant’s bank account.
  • The total compensation payable to Shankar Dutt is Rs 35,95,923 with 6% p.a. interest from the date of filing of the claim petition.
  • No interlocutory applications shall survive.

Topics: Compensation, Motor Accident, Insurance