The Supreme Court enhanced compensation to Rs 85 lakh for a 24-year-old woman left with 100% disability after a 2015 road accident. The judgment underscores the Court’s commitment to ensuring just, meaningful, and life-supporting relief for victims.
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NEW DELHI: In a landmark judgment reinforcing the principle of “just and meaningful compensation” for accident victims, the Supreme Court of India has more than doubled the compensation awarded to a 24-year-old woman who suffered catastrophic injuries in a 2015 road accident in Belagavi, Karnataka.
The Court increased the amount from nearly ₹36 lakh to ₹85,09,369, holding that earlier courts had failed to assess crucial components of her lifelong loss and dependency adequately.
Background
Reshma, the claimant, was hit by a vehicle on 23 February 2015, resulting in severe and permanent injuries. Medical assessments confirmed 100% functional disability, including 85% mental disability and 45% disability of the left lower limb. The accident happened in broad daylight due to the rash and negligent driving of the insured vehicle’s driver. Liability of the insurer—New India Assurance Company Ltd., was undisputed.
Despite the gravity of her condition, the Motor Accident Claims Tribunal (MACT) in 2017 awarded only ₹30.24 lakh, assessing her income at ₹10,000 per month using the standard multiplier method. In 2023, the Karnataka High Court enhanced the award to ₹35.86 lakh, reassessing her income at ₹9,000 and granting 40% prospects. However, the revised compensation still fell short of addressing her lifelong dependency and medical needs.
Supreme Court Steps In
Reshma appealed to the Supreme Court seeking a realistic and humane assessment. A bench of Justices Sanjay Karol and Nongmeikapam Kotiswar Singh sharply criticized the earlier courts for severely underestimating her long-term requirements, stating that monetary compensation must strive to restore, as far as possible, the life she would have led but for the accident.
The Court observed that Reshma’s dreams, aspirations, and prospects of a normal life, including a happy marital future, had been permanently altered.
The Supreme Court recalculated the compensation by revisiting several key components that the earlier courts had undervalued. For loss of marital prospects, the Court awarded ₹4 lakh, drawing from the precedent set in Kajal v. Jagdish Chand and noting that the impact of Reshma’s disability on her chances of marriage was equally severe.
The bench also made a major revision in attendant charges, approving the cost of two full-time attendants for her lifelong care. This alone amounted to ₹43.20 lakh, reflecting her complete dependency for daily activities. The amount granted for pain and suffering was increased to ₹5 lakh, as the earlier award of ₹2 lakh did not correspond to the magnitude of her physical and psychological trauma.
The Court additionally enhanced the sums payable for medical expenses, loss of amenities, future medical care, conveyance, and various incidental costs necessary for her long-term rehabilitation. With all components reassessed, the total compensation rose substantially to ₹85,09,369.
The Court directed New India Assurance to deposit the full amount directly into Reshma’s bank account by 30 November 2025. Her counsel must provide the necessary account details. Interest on the enhanced sum will be calculated in accordance with the terms outlined by the High Court in its 2024 judgment.
While acknowledging that no financial amount can restore a young woman’s shattered future, the Supreme Court emphasized that courts must strive to provide relief that is fair, meaningful, and reflective of the victim’s lifelong needs.
Case Title:
Reshma Vs Dajiba Krishna Lad & Anr
SLP (C) No. 14729 of 2025
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