Supreme Court ruling empowering legal heirs in motor accident compensation cases.
SC ENHANCES COMPENSATION FOR MOTOR ACCIDENT VICTIM’S HEIRS
CASE SUMMARY – The Supreme Court in Dhannalal Alias Dhanraj (Dead) Through LRs. vs. Nasir Khan upheld that a motor accident compensation claim survives to the legal heirs even if the injured dies from unrelated causes, following the 2019 amendment to Section 167(5) of the Motor Vehicles Act. The Court fixed the deceased’s monthly income at ₹9,000 with 25% future prospects, applied a multiplier of 11 reflecting his actual life span, and enhanced the total compensation to ₹20,37,095 with 9% interest from filing until payment. This ruling clarifies that personal injury claims constitute part of the deceased’s estate and may be pursued by heirs.
| ASPECTS | DETAILS |
| Case Title | Dhannalal Alias Dhanraj (Dead) Through LRs. vs. Nasir Khan & Others |
| Introduction | Appeal for enhancement of motor accident compensation after claimant, 100% disabled, died during the pendency of proceedings. |
| Factual Background | Dhannalal suffered 100% disability from a motor accident. Tribunal awarded ₹18,52,000 with 9% interest, later reduced to ₹4,030 monthly income on remand. He died in 2024 while appeal was pending. |
| Legal Issues |
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| Applicable Law |
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| Analysis | Court held that post-2019 amendment, right to claim survives to legal heirs regardless of death cause. Monthly income reasonably fixed at ₹9,000 with 25% future prospects. Multiplier reduced to 11 reflecting actual life span. |
| Conclusion | Total compensation enhanced to ₹20,37,095 with 9% interest from claim filing till payment. Appeal allowed. |
| Current Scenario | Establishes precedent that heirs can pursue motor accident injury claims even if the injured dies of unrelated causes after amendment to Section 167(5). |
“The right to claim compensation for injury survives to the legal representatives, irrespective of the cause of death.”
SOURCE – SUPREME COURT OF INDIA
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