Continued employment and unchanged salary do not bar compensation for future loss of earning capacity.

On 06 April 2024 at approximately 12:30 a.m., the appellant was riding motorcycle No. GJ-06-MK-3190 when an S.T. bus driven by respondent No. 1 allegedly collided with the motorcycle in a rash and negligent manner, causing grievous injuries to the appellant.

The appellant filed M.A.C.P. No. 56 of 2024 before the Motor Accident Claims Tribunal, Vadodara at Karjan.

The Tribunal partly allowed the claim petition and awarded ₹5,09,000 with interest at 9% per annum from the date of filing until realization.

The appellant challenged the award on the ground that compensation for future loss of income or loss of earning capacity had not been granted.

At the time of the accident, he was employed as an Executive Civil Engineer (field work) with Alembic Limited, earning a net monthly salary of ₹30,000, and was approximately 26 years old.

The Tribunal had assessed his functional disability at 9%, which was not challenged before the High Court.

Whether the appellant was entitled to compensation for future loss of income or loss of earning capacity despite continuing in employment and suffering no immediate reduction in salary?

Whether future prospects, functional disability, age, and the applicable multiplier required enhancement of the compensation awarded by the Tribunal?

What additional compensation and consequential directions should be granted?

The Court applied the principles governing compensation under the Motor Vehicles Act, including assessment of loss of earning capacity on the basis of functional disability rather than merely actual present income.

Relying on Sandeep Khanuja v. Atul Dande & Anr., (2017) 3 SCC 351, and Soni Sharma v. Oriental Insurance Company Ltd. & Ors., 2026 ACJ 109, the Court held that continuation in employment or receipt of the same salary does not by itself bar compensation for future loss of income, since disability may adversely affect efficiency, career progression, promotional prospects, and future earning capacity.

Applying National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, and Sidram v. The Divisional Manager, United India Insurance Co. Ltd. & Anr., 2022 INSC 1202, the Court added 50% of the income towards future prospects for the 26-year-old claimant.

The multiplier method was applied using a multiplier of 17, with the established functional disability of 9%.

The Court found the Tribunal’s refusal to award future loss of income solely because the appellant continued in service and his salary had not immediately diminished to be inconsistent with the governing precedents.

The appellant’s employment involved field work, and the Court accepted that the functional disability could impair his future efficiency, career prospects, and earning potential notwithstanding continued employment.

On the undisputed net monthly income of ₹30,000, the Court added 50% for future prospects, resulting in a notional monthly income of ₹45,000.

Applying the 9% functional disability, the monthly income, twelve months, and multiplier of 17, it calculated future loss of income as ₹8,26,200 (₹45,000 × 9% × 12 × 17).

Since the compensation under the remaining heads was not challenged, those amounts were affirmed.

The total compensation was enhanced from ₹5,09,000 to ₹11,35,200, comprising ₹8,26,200 for future loss of income, ₹45,000 for actual loss of income, ₹1,84,000 for medical expenses, ₹30,000 for special diet, attendant charges and transportation, and ₹50,000 for pain, shock and suffering.

The appellant was awarded additional compensation of ₹6,26,000 with interest at 9% per annum from the date of filing of the claim petition until realization.

Respondent No. 2, GSRTC, was directed to deposit the additional amount with accrued interest before the Tribunal within six weeks of receiving the order, after which the Tribunal was directed to disburse the entire awarded amount subject to verification and deduction of any deficit court fee.

No order was made as to costs.