A 90% physical disability may constitute total functional disability when it ends the claimant’s avocation.

On 12 April 2017, a tipper lorry struck the claimant’s motorcycle from behind while he was waiting at a traffic signal in Chennai.

The claimant sustained, among other injuries, an above-knee amputation of his right leg.

He was working as a site supervisor and also undertaking construction work independently; the Tribunal found that the amputation prevented him from continuing his avocation.

The Motor Accidents Claims Tribunal awarded Rs.84,53,531, including Rs.65,52,000 for disability and Rs.14,61,531 for medical expenses and an artificial leg, with interest at 7.5% per annum.

The insurer appealed against the quantum, and the claimant also appealed.

Whether the Tribunal was justified in treating the claimant’s 90% permanent disability as functional disability and applying the multiplier method to assess compensation.

Whether the amount awarded for medical expenses and fixation of an artificial leg required reduction.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against an award of the Motor Accidents Claims Tribunal.

In assessing compensation for permanent disability, Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, requires consideration of the effect of the injury on the claimant’s ability to perform their avocation; where the injury results in functional disability affecting earning capacity, compensation may be assessed using the multiplier method.

The compensation awarded must also be supported by the evidence and circumstances relevant to the claimed expenses.

The Court upheld the Tribunal’s assessment of disability because the claimant’s above-knee amputation prevented him from continuing his work as a site supervisor and independent construction worker.

Applying Raj Kumar, it found the Tribunal justified in treating the disability as functional and using the multiplier method; it also declined to disturb the monthly income of Rs.30,000 or the resulting disability award of Rs.65,52,000.

However, the claimant’s medical expenses were Rs.4,39,531, and the Court assessed the cost of an artificial leg at approximately Rs.2,00,000.

It therefore reduced the combined award under that head from Rs.14,61,531 to Rs.6,39,531.

It directed the insurer to deposit the modified amount, less any sum already deposited, within eight weeks; the claimant may withdraw the amount and accrued interest, subject to credit for sums already withdrawn.

Both appeals were disposed of, with no order as to costs.