Supreme Court Clarifies Multiplier Application and 100% Disability Compensation in Motor Accident Claims

Case Snapshot

• Case Name: Reliance General Insurance Company Limited v. Priyanka Das and Others

• Citation: 2026 INSC 950

• Bench: Justice S.V.N. Bhatti and Justice N.V. Anjaria

• Date of Judgment: September 3, 2026

• Area of Law: Motor Accident Compensation, Insurance Law, Personal Injury, Disability Assessment

The Judgment in One Line

Supreme Court upholds multiplier based on deceased's age and awards enhanced compensation for 100% permanent physical impairment despite continued employment with special accommodations.

Why This Judgment Matters

This judgment settles two significant questions in motor accident compensation: (i) multiplier must be based on the deceased's age, not dependents' age, even for bachelors; and (ii) 100% permanent physical impairment warrants full compensation for loss of earning capacity even if the claimant continues in employment through special accommodations. The ruling reinforces the distinction between physical disability and functional disability, while clarifying that the "open market" test determines compensation, not continued employment in a highly accommodated role.

Background

On April 10, 2011, a truck hit a motorcycle, killing the rider Sushant Prabhakaran (33) and grievously injuring the pillion rider Priyanka Das (35). The Claimant sustained pelvic fractures, permanent blindness, and required a permanent colostomy stoma after multiple surgeries.

Two claim petitions were filed: one for the death of Sushant Prabhakaran and another for Priyanka Das's injuries. The Tribunal awarded compensation in both, apportioning major share to parents of the deceased (rejecting Priyanka's claim as wife) and assessing her functional disability at 60%. The High Court increased it to 80% and granted 50% future prospects. Both the Insurer and the Claimant appealed to the Supreme Court.

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