Addition of Future Prospects and Enhancement of Actual Income Loss in Motor Accident Disability Compensation

On May 8, 2011, the appellant was a pillion rider on a motorcycle that was struck from behind by a car driven rashly by respondent No. 1.

The appellant sustained a trimalleolar fracture and compound Grade-I fracture of the medial malleolus.

On July 19, 2024, the Motor Accident Claims Tribunal (MACT) awarded Rs. 1,76,257/- with 9% interest in M.A.C.P. No. 656 of 2017.

The appellant preferred this appeal seeking enhancement, contending that the Tribunal failed to consider future prospects and awarded inadequate sums for actual loss of income and non-pecuniary heads.

Whether the claimant is entitled to an addition for future prospects in the calculation of future loss of income.

Whether the compensation awarded under the heads of actual loss of income, pain and suffering, and special diet/attendant charges is just and adequate.

The principles for calculating compensation under the Motor Vehicles Act, 1988.

National Insurance Company Ltd. v. Pranay Sethi (2017) 16 SCC 680 to justify adding a percentage for "future prospects" to the victim's income.

Sidram v. Divisional Manager, United India Insurance Company Limited & Anr. (2022) INSC 1202 to determine that 10% of the monthly income should be added for a claimant in the relevant age bracket (56 years) even in injury cases.

The Court found the Tribunal erred by excluding future prospects from the assessment of future loss of income. Given the appellant was 56 years old, the Court added 10% to his monthly notional income of Rs. 4,980/-, resulting in Rs. 5,478/-, and applied a multiplier of 9 and disability of 16% to arrive at Rs. 94,716/-.

Regarding "actual loss of income," the Court determined that given the severity of the trimalleolar fracture and prolonged physiotherapy, the Tribunal's award for 2 months was insufficient; it was increased to 6 months.

The Court observed that the length of medical treatment and the nature of injuries warranted doubling the compensation for "pain, shock, and suffering" (to Rs. 30,000/-) and "special diet, attendant charges and transportation" (to Rs. 20,000/-) to meet the standard of "just compensation".

The total compensation was increased from Rs. 1,76,257/- to Rs. 2,29,826/-, resulting in an additional award of Rs. 53,569/-, with the Insurance Company ordered to deposit the additional amount with 9% interest from the date of the claim petition till realization within six weeks.