21-Year-Old Amputee’s Compensation Raised To Rs 24.76 Lakh As Madras HC Doubles Notional Monthly Income

The claimant, aged 21, was injured on 20 October 2013 while travelling as a pillion rider when a Transport Corporation bus struck the motorcycle.

The Tribunal attributed the accident to the bus driver’s negligence and awarded ₹9,96,250, including ₹8,42,400 for 65% disability, calculated using a monthly income of ₹6,000 and the multiplier method.

The claimant appealed, seeking enhancement, contending that his monthly income should be fixed at ₹15,000 and that his disability effectively deprived him of his ability to work.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988, challenging an award made on a claim under Section 166-A, as identified in the judgment.

For quantifying disability compensation, the Court applied the multiplier method, using the claimant’s income, future prospects, age-based multiplier and assessed disability. Relying on National Insurance Company Ltd. v. Pranay Sethi, 2017 (2) TNMAC 609 (SC), it applied a 40% addition for future prospects.

Where the multiplier method is used to award compensation for permanent disability, the claimant is not entitled to a separate award under the head of loss of income.

The Court accepted that the Tribunal had properly used the multiplier method and applied the multiplier of 18, but found the notional monthly income of ₹6,000 inadequate for a 21-year-old claimant injured in 2013.

Because the claimant had not proved his asserted income of ₹15,000, the Court fixed notional income at ₹12,000, added 40% for future prospects, and applied the assessed disability of 65%: ₹16,800 × 12 × 18 × 65% = ₹23,58,720.

Since the disability award was calculated using the multiplier method, it removed the Tribunal’s separate ₹36,000 award for loss of income.

The enhanced amount carries interest at 7.5% per annum from the date of the claim petition, subject to the order excluding interest for any delay period; the Corporation was directed to deposit the amount, less any sum already deposited, within six weeks.