Santhosh vs United India Insurance Co. Ltd.

2026 INSC 500
Non-reportable

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. OF 2026
[@ Special Leave Petition (C) No.22089/2023]

SANTHOSH
…APPELLANT
Versus
UNITED INDIA INSURANCE
COMPANY LTD. AND ANR.
…RESPONDENTS

O R D E R

Leave granted.
2. The appellant was the rider of a motorcycle, who met
with an accident on 16.08.2019, when he collided with another
motorcycle. The Tribunal and the High Court found that the
negligence was on the part of the rider of the other
motorcycle, which was driven in a rash manner. The
offending vehicle was covered with a valid insurance policy,
and both the riders had valid driving licenses. The Tribunal
Signature Not Verified
Digitally signed by
babita pandey
Date: 2026.05.16
12:25:10 IST
Reason:
Page 1 of 6
CA @ SLP(C) No.22089 of 2026

awarded an amount of Rs.19,58,513/- on various heads. On
an appeal filed by the Insurance Company, the loss of earning
capacity due to the disability was reduced from
Rs.17,66,520/- as awarded by the Tribunal to Rs.80,000/-. The
Tribunal had found a disability of 20% and taken the income
of the appellant at Rs.30,000/-; deducted Income Tax to the
tune of Rs.13,300/- added future prospects of 40% and
applied multiplicand of 18 and on the 20% disability
assessed, the total loss of earning capacity was computed at
Rs.17,66,520/-. Under the conventional heads of attendant
charges, pain and suffering, extra nourishment and
transportation, a total amount Rs.82,000/- was granted along
with medical expenses of Rs.1,09,993/-.

3. The High Court enhanced the compensation under the
conventional heads to Rs.1,05,000/- and added an amount of
Rs.50,000/- for loss of amenities, while retaining the medical
expenses granted by the Tribunal. However reduction was
made on the reasoning that the multiplier method adopted by
the Tribunal was erroneous. A sum of Rs.4,000/- was awarded
Page 2 of 6
CA @ SLP(C) No.22089 of 2026

per percentage and a total of Rs.80,000/- was computed as the
compensation under the head of loss of earning capacity due
to disability. We cannot but find that the loss of earning
capacity as assessed by the High Court is unheard of.

4. Even before the Tribunal the certificate of disablement
from the Regional Medical Board, Government Hospital,
Royapettah, Chennai assessed the appellant to have 20%
permanent disability. Before us, there was a challenge raised
to the disability, which we had referred again to the very
same Hospital. The newly constituted Regional Medial Board
also assessed the appellant as having 20% permanent
disability. The appellant was asserted to be a squash coach
and the disability would have considerably affected his
employment; though not found to be permanent by the
Tribunal. Before the Tribunal, the appellant had produced an
appointment letter of the Indian Institute of Technology,
Madras produced as Ex.P13 which indicated him to have
been engaged as a coach in the said institute; though not as a
permanent employee. The bank statement of the appellant
Page 3 of 6
CA @ SLP(C) No.22089 of 2026

produced as Ex.P14 also indicated that a sum of Rs.27,000/-
was credited as his salary. It was on this basis that the
Tribunal arrived at a monthly income of Rs.30,000/- from
which the income tax of Rs.13,300/- was reduced on the
annual income computed.
5. As we found the measure adopted by the High Court is
totally erroneous and the Tribunal correctly assessed the loss
of earning capacity and granted compensation based on the
salary, the age and the future prospects applicable to a self-
employed person and granted 20% of the same as the loss of
earning capacity due to disability, which we uphold.
6. Insofar as the medical expenses and the other amounts
granted on conventional heads, we uphold the award of the
High Court but, however, delete Rs.50,000/- granted as
amenities. We hence restore the award of the Tribunal insofar
as the loss of earning capacity due to disability and uphold
the order of the High Court on all other heads, except loss of
amenities.
Page 4 of 6
CA @ SLP(C) No.22089 of 2026

7. We are conscious of the fact that there is no appeal filed
by the insurer from the order of the High Court before this
Court. However, since the principle is of awarding just
compensation, we are of the opinion that the loss of earning
capacity takes into account the loss of amenities and hence
we delete Rs.50,000/-.
8. The total amounts awarded hence would be as per the
following computation:


S. No. Particulars Amount
1. Loss of earning capacity due to
Rs.17,66,520/-
disability of 20%
2. Medical expenses Rs.1,09,993/-
3. Attendant Charges Rs.20,000/-
4. Towards Pain and suffering Rs.50,000/-
5. Towards Extra Nourishment Rs.20,000/-
6. Towards Transportation Rs.15,000/-
Total Rs.19,81,513/-

9. The compensation awarded as above shall be paid after
deducting what is already paid with interest @ 7.5% as
awarded by the Tribunal. The same shall be disbursed to the
Page 5 of 6
CA @ SLP(C) No.22089 of 2026

appellant within a period of three months from the receipt of
this order.
10. The appeal stands allowed with the above directions.
11. Pending application(s), if any, shall stand disposed of.


……….…………………….….. J.
(SANJAY KUMAR)



……….…………………….….. J.
(K. VINOD CHANDRAN)

NEW DELHI;
MAY 12, 2026.

Page 6 of 6
CA @ SLP(C) No.22089 of 2026