Motor Vehicles Act, 1988 : Supreme Court Enhances Compensation and Grants Interest Amount at the Rate of more than 7.5% as well

Motor Vehicles Act, 1988 : Supreme Court Enhances Compensation and Grants Interest Amount at the Rate of more than 7.5% as well

In case of Riyas v. P.N. Shinosh [2025] GCtR 1765 (SC), issue was around compensation under MV Act, 1988. Compensation amount was enhanced and in addition to principal compensation amount, interest at the rate of 8% was also granted.  The case pertains to a 14 years old minor student, who was studying in 7th standard and suffered 77.1% permanent disability on account of the injuries sustained by him in the motor accident.

Supreme Court also explained whether medical expenses are limited to the bills produced or not. It was held that while awarding the medical expenses to the appellant, the High Court has taken the basis of the actual bills, overlooking that the victim would have incurred miscellaneous amounts towards the medical treatment during his 22 days stay in the hospital, over and above the actual bills in the nature of out-of-pocket expenses. Furthermore, the victim would be required to spent towards the medical treatment in future also. Taking into account such considerations, granting Rs. 50,000/- in total towards medical expenses would be proper.

Furthermore, the victim would be entitled to the compensation towards the attendant charges which is assessed to be Rs. 40,000/-. Under the head of loss of marriage prospects, Rs. 3 lakhs deserves to be awarded.

The amount of Rs. 40,000/- towards special diet and transportation is awarded.

Amount of Rs. 3 lakhs is awarded towards pain and suffering.

An amount of Rs. 80,000/- towards loss of amenities would not be considered excessive.