In the matter of Shankar Dutt vs. United India Insurance Co. Ltd. and Others (2026 INSC 656), the Supreme Court of India allowed the appellant’s appeal, enhancing his total compensation from ₹11,51,423 to ₹35,95,923 for injuries sustained in a 2004 motor accident. The Court determined that the appellant, a skilled carpenter who suffered an above-knee amputation, experienced 100% functional disability regarding his profession. Consequently, the Court significantly increased the compensation to account for functional disability, future prospects, and lifetime expenses for the maintenance and replacement of his prosthetic limb.
- Incident: On November 9, 2004, the appellant, then 38, was involved in a road accident caused by a rashly driven Jeep, resulting in severe injuries to his right leg, which necessitated an amputation above the knee.
- Procedural History: The Claims Tribunal initially awarded ₹4,77,823. The High Court of Uttarakhand later enhanced this to ₹11,51,423, applying a monthly income of ₹5,000 and 70% disability. The appellant approached the Supreme Court seeking further enhancement.
Supreme Court Findings
- Functional Disability: The Court held that a carpenter, as a skilled artisan, requires the use of both legs to perform his duties (such as sitting in a squatting position). Given the amputation, his ability to perform carpentry is entirely compromised, justifying an assessment of 100% functional disability rather than the previously accepted 70%.
- Notional Income: Reassessing his status as a skilled worker, the Court fixed his monthly income at ₹9,000, noting that the High Court’s figure of ₹5,000 was inadequate.
- Future Expenses: The Court specifically addressed the lifetime costs of maintaining and periodically replacing the prosthetic limb, awarding a lump sum of ₹10,00,000 under the head of “Future Medical Expenses”.
- Principles of Compensation: The Court emphasized that the objective of compensation is to restore the injured to their pre-accident position as far as possible, covering both pecuniary and non-pecuniary losses such as pain, suffering, loss of amenities, and attendant charges.
Final Order
- The total compensation was enhanced to ₹35,95,923.
- The appellant is entitled to interest at the rate of 6% per annum from the date of filing the claim petition.
Respondent No. 1 (United India Insurance Co. Ltd.) is directed to deposit the balance amount of ₹24,44,500 with the Claims Tribunal within six weeks for disbursement to the appellant.
2026 INSC 656
Shankar Dutt V. United India Insurance Co. Ltd. And Others (D.O.J. 24.06.2026)




