SC ENHANCES COMPENSATION FOR MOTOR ACCIDENT VICTIM’S HEIRS

by | Sep 30, 2025

 Supreme Court judgment on heirs’ right to continue motor accident claim.

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
  1. Can legal heirs continue personal injury compensation claim after claimant’s death?
  2. Appropriate income calculation and multiplier for loss of estate.
Applicable Law
  1. Section 166 & 167(5) Motor Vehicles Act, 1988 (amended 2019); 
  2. Section 306 Indian Succession Act, 1925; 
  3. Precedents: Oriental Insurance Co. vs. Kahlon (2022), Pranay Sethi (2017).
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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Written By Nancy Sharma

I am Nancy Mahavir Sharma, a passionate legal writer and a judicial service aspirant who is interested in legal researching and writing. I have completed Latin Legum Magister degree. I have been writing from past few years and I am excited to share my legal thoughts and opinions here. I believe that everyone has the potential to make a difference.

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