When motorcyclist K. Maran suffered brain damage in a road accident, insurers offered $500,000 to last him for life.
But before the offer could be accepted, he died.
Now, his mother will get to collect the full sum after the High Court ruled she was entitled to it - despite his death.
Justice Choo Han Teck said that making the insurers cough up "might result in an overpayment". However, this did not necessarily mean that the payment was unjust.
Mr Maran was 19 when his motorcycle collided with a car in July 2006. The accident, in Hougang Avenue 8, left him mentally disabled and incapable of managing his own affairs.
Insurers for the driver, Mr Teo Gim Tiong, accepted 40 per cent liability.
In September 2011, they offered to pay $500,000 to cover the victim's lifelong needs.
But he died the following March and his mother, Madam K.
Pushpavathi, later got a court order making her the legal representative of his estate.
On the same day, Liberty Insurance decided to withdraw its offer. It gave Madam Pushpavathi 24 hours' notice, as required by court rules.