An injured claimant with over 20% disability is entitled to 40% future prospects in calculating loss of future income.

The claimant sought compensation for injuries sustained in a road accident on 13 May 2024, allegedly caused by the rash and negligent driving of a car.

The MACT awarded him ₹32,06,822, including compensation for future loss of income, medical expenses and other heads.

He appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

The High Court considered his age, notional income, injuries, period of hospitalisation and disability in reassessing the award.

1. Whether the Tribunal’s assessment of the claimant’s compensation required enhancement, including on account of income, disability and future loss of earnings.

2. Whether the amounts awarded under non-pecuniary and other heads, including pain and suffering, loss of amenities, laid-up-period income and attendant, conveyance, food and nourishment expenses, required enhancement.

Section 173(1) of the Motor Vehicles Act, 1988 provides the appellate route invoked by the claimant.

In assessing motor-accident compensation, the Court applied the multiplier method to calculate loss of future income, using the claimant’s income, age, multiplier and functional disability; it also included future prospects of 40% because the assessed disability exceeded 20%.

The Court used the Karnataka State Legal Services Authority’s notional income figure of ₹17,000 per month for 2024 and assessed compensation under the relevant pecuniary and non-pecuniary heads.

The judgment cites no precedent.

The Court accepted the Tribunal’s multiplier of 17, but substituted the 2024 notional income of ₹17,000 per month for the Tribunal’s ₹16,500 figure.

Although the doctor’s assessment of limb disability was considered, the Court upheld the Tribunal’s functional-disability finding of 50%; applying 40% future prospects and the multiplier, it calculated future income loss using 52% disability, yielding ₹25,24,704.

Given the injuries and 77-day hospital stay, it increased compensation for pain and suffering, amenities, attendant and related expenses, and six months’ loss of income, while leaving medical and future medical expenses unchanged.

The Court increased total compensation to ₹43,42,206 from ₹32,06,822 and awarded enhanced compensation of ₹11,35,384, with interest at 6% per annum from the date of the petition until realisation.

The insurer was directed to deposit the enhanced amount with interest within six weeks; 50% of the enhancement was to be placed in a three-year fixed deposit and the balance released to the claimant.