Reliance General Insurance Co. Ltd. vs Priyanka Das and Others

This highly significant judgment of the Supreme Court of India clarifies two fundamental rules regarding motor accident compensation claims under the Motor Vehicles Act. The case originated from a tragic road accident that occurred on April 10, 2011. A speeding truck hit a motorcycle, instantly killing the driver, Sushant Prabhakaran, and leaving the pillion rider, Priyanka Das, with catastrophic, life-altering injuries. Priyanka was left completely blind due to brain damage and required a permanent colostomy bag for life. The case went to the Supreme Court on two distinct issues. First, the insurance company argued that because Sushant was a young bachelor, the compensation meant for his dependent parents should be calculated using the parents' older age. This would drastically reduce the payment. The Supreme Court flatly rejected this argument, confirming that the legal position is now well-settled. For bachelors, the "multiplier" used to calculate loss of dependency must strictly be based on the age of the deceased bachelor, not the older parents. Second, regarding Priyanka's personal injury claim, the insurance company argued that since she was still employed at IBM and receiving a salary using specialized software, her functional disability was not 100%. The Supreme Court established a powerful pro-citizen rule: functional disability must be measured by the victim’s ability to compete and find work in the open, competitive market. If a victim can only work because a compassionate employer has provided extraordinary assistance out of corporate charity, this does not mean the victim has actual earning capacity in the open market. Thus, the Court assessed her functional disability at 100% and increased her total compensation to an impressive Rs. 3.77 Crores with interest.

On 10 April 2011, a truck hit a motorcycle, instantly killing the driver Sushant Prabhakaran and leaving the pillion rider, Priyanka Das, with severe, life-altering injuries including complete blindness and intestinal damage.

The Supreme Court dismissed the Insurance Company's appeals. It ruled that bachelor compensation is calculated on the deceased's age, and enhanced Priyanka's compensation to Rs. 3.77 Crores by assessing her functional disability at 100% based on open-market employability.

This judgment protects accident victims by ensuring that compassionate employers' kindness isn't used by insurance companies to reduce compensation. It also firmly secures higher compensation rates for parents of young bachelors killed in accidents.