A 27-year-old self-employed injury claimant is entitled to 40% future prospects in assessing loss of earning capacity.

On 2 January 2012, the appellant was injured when a KSRTC bus collided with the car in which he was travelling.

The Tribunal found the bus driver negligent and awarded the appellant ₹1,82,400 in compensation.

The appellant, who claimed to be a 27-year-old interior designer, appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

His injuries included a right femur fracture, fractures of three ribs, and a metacarpal fracture; the medical evidence also described a bent fixator nail, restricted right-hip movement, and shortening of the right leg.

Whether the Tribunal’s assessment of compensation required modification, including as to income, loss of earning capacity, and compensation under the relevant heads.

The claim was brought under Section 166 of the Motor Vehicles Act, 1988, and the appeal under Section 173(1).

Compensation for personal injuries is to be assessed on the evidence and circumstances of the case, including the claimant’s income, age, functional loss of earning capacity, treatment and recovery period, and the effect of the injuries on future amenities and medical needs.

Where claimed income is not proved, the court may adopt a notional income; the Court applied ₹7,000 per month for 2012 and added 40% towards future prospects for a self-employed claimant.

No precedent is identified in the judgment.

The claimant did not substantiate his asserted monthly income of ₹8,000, so the Court replaced the Tribunal’s ₹4,000 figure with the applicable notional income of ₹7,000.

Given the femur fracture and multiple other fractures, it increased the assessed loss of earning capacity from 15% to 20%; applying the multiplier of 17 and adding 40% future prospects, it calculated future loss of income at ₹3,99,840.

The Court also considered the 30-day inpatient treatment, medical bills, three-month recovery period, and evidence of lasting physical limitations when enhancing compensation for pain and suffering, medical and incidental expenses, loss of income during treatment, loss of amenities, and future medical expenses.

It modified the Tribunal’s award and reassessed compensation at ₹6,15,840, in place of ₹1,82,400, with interest at 6% per annum from the date of the claim petition until deposit, excluding the delayed period of 1,665 days.

The respondent was directed to deposit the amount within eight weeks, after which the compensation and interest were to be released to the claimant electronically.