'Compensation must cover a lifetime of suffering': Supreme Court doubles compensation to Rs 83 lakh for child left disabled in crash, says 'entire future has been taken away'

The Supreme Court has nearly doubled the motor accident compensation awarded to an Odisha girl who was left permanently paralysed after a road crash when she was six months old, raising the total payout to Rs 83.38 lakh and ruling that compensation in cases involving injured children must account for an entire lifetime of loss, not just the immediate physical injury.

The judgment, delivered on 3 August 2026 by a bench of Justices Ujjal Bhuyan and N.V. Anjaria, set aside the Orissa High Court's award of Rs 45.40 lakh and directed New India Assurance Company Limited to deposit the revised amount along with interest at 9 per cent per annum from the date the claim was first filed.

What Happened in the Road Crash


On 16 June 2015, the child, then aged six months, was travelling with her parents in a Hyundai i10 on a road in Odisha when a tanker coming from the opposite direction swerved into their lane and collided with the car. Both the child and her father sustained multiple grievous injuries.

The child was treated at Apollo Hospital, Bhubaneswar, followed by Jagannath Hospital, and subsequently received long-term care and rehabilitation at AIIMS Bhubaneswar, NIMHANS Bengaluru, and the Swami Vivekananda National Institute of Rehabilitation, Training and Research in Cuttack.

At the end of her treatment, she was diagnosed with post-traumatic myelopathy with paraplegia. Her permanent disability was certified at 90 per cent. Medical evidence before the court established that she would remain dependent on others for the rest of her life, requiring continuous assistance even for basic daily functions.

A police case was registered against the tanker driver under sections relating to rash and negligent driving, and a chargesheet was filed.

What the Lower Courts Awarded

The Motor Accident Claims Tribunal, Cuttack, in April 2022 awarded a total compensation of Rs 30.12 lakh. The child's mother, acting as her natural guardian, challenged this before the Orissa High Court, which in January 2023 partly allowed the appeal and raised the amount to Rs 45.40 lakh.

The family then approached the Supreme Court, arguing that even the enhanced figure fell well short of what the law requires as just compensation given the nature and permanence of the disability.

How Did the Supreme Court Calculate Rs 83 Lakh?

The Supreme Court revised the compensation across several heads.

On loss of future earnings, the court applied a multiplier of 18, restoring what the MACT had originally used and which the High Court had incorrectly reduced to 15. The court also held that while the physical disability was certified at 90 per cent, the child's functional disability was effectively 100 per cent, since she would be unable to engage in any employment or livelihood activity for the rest of her life. It also directed that the notional income be calculated at the minimum wages for a skilled worker in Odisha on the date of the accident, rather than the unskilled labourer rate applied by the MACT. This head was determined at Rs 17.46 lakh.

On attendant charges, the court held that the child would require two full-time attendants for life. Taking the cost of one attendant at Rs 6,000 per month and applying the multiplier of 18, it awarded Rs 25.92 lakh under this head alone.

On pain, suffering, loss of amenities, and loss of marriage prospects, the court enhanced the combined figure to Rs 25 lakh, up from Rs 22 lakh awarded by the High Court.

Future medical treatment was raised to Rs 10 lakh from Rs 5 lakh, reflecting the lifelong care the child would require. Conveyance and special diet was enhanced to Rs 2 lakh. Medical expenses already incurred were retained at Rs 3 lakh.

What the Supreme Court Said About Child Victims and Compensation

The court's ruling carried several significant observations on how compensation must be assessed when the victim is a child.

The bench held that a child who suffers catastrophic injuries loses far more than physical ability. It said such injuries accompany the victim throughout life and affect every stage of development, adding that what has been taken away is not merely physical capacity but the child's entire future life.

The court stated that a child victim cannot be treated as a non-earning individual simply because she was not in employment at the time of the accident. It said the law must account for the future that has been lost and not merely the status at the time of the accident.

On the question of disability, the court drew a distinction between physical disability and functional disability, holding that a medically certified disability of 90 per cent can translate into a functional disability of 100 per cent when the victim is wholly unable to engage in any livelihood activity. In this case, it applied the 100 per cent figure for the purpose of calculating compensation.

The court also reiterated that compensation in motor accident cases must be just, fair, and reasonable, and that it should neither be a windfall nor a pittance. It noted that the claim can only be made once and that courts must take a realistic and welfare-oriented approach, particularly where the victim is a child with permanent and irreversible disability.

The bench relied on a line of earlier Supreme Court decisions including Kajal versus Jagdish Chand, Baby Sakshi Greola versus Manzoor Ahmed Simon, and the 2026 ruling in Hansraj versus Mukesh Nath, all of which had directed enhanced compensation for child victims of road accidents on similar grounds.

New India Assurance Directed to Deposit Rs 83 Lakh

The Supreme Court directed New India Assurance Company Limited to deposit the full revised compensation of Rs 83.38 lakh along with accrued interest at 9 per cent per annum within six weeks of receiving the judgment, before the Motor Accident Claims Tribunal in Cuttack, which will then disburse the amount to the claimant.

Check the case judgement here: