The quake, previously was reported as 8.6 magnitude, and the new estimate means its was 40 per cent larger than had been believed, scientists from the University of Utah and University of California, said in statement.
The study concludes that the magnitude-8.7 quake and an 8.2 quake two hours later were part of the breakup of the Indian and Australian subplates along a yet-unclear boundary beneath the Indian Ocean west of Sumatra and southeast of India.
"We've never seen an earthquake like this," said study co-author Keith Koper, an associate professor geophysics and director of the University of Utah Seismograph Stations.
"This is part of the messy business of breaking up a plate. This is a geologic process. It will take millions of years to form a new plate boundary and, most likely, it will take thousands of similar large quakes for that to happen," he said.
The 8.7 jolt also "is probably the largest intraplate [within a single tectonic plate of Earth's crust] ever seismically recorded," researchers added.
The great quake "is possibly the largest strike-slip earthquake ever seismically recorded," although a similar size quake in Tibet in 1950 was of an unknown type, researchers said.
The quake was caused by at least four undersea fault ruptures southwest of Sumatra, Indonesia, within a 2-minute, 40-second period.
It killed at least two people, and eight others died from heart attacks. The quake was felt from India to Australia, including throughout South Asia and Southeast Asia.
If the four ruptures were considered separate quakes, their magnitudes would have been 8.5, 7.9, 8.3 and 7.8 on the "moment magnitude" scale used to measure the largest quakes, the scientists said.
Koper said the 2012 quakes likely were triggered, at least in part, by changes in crustal stresses caused by the magnitude-9.1 Sumatra-Andaman earthquake of December 26, 2004
