Courts may enhance notional income where the tribunal’s assessment is unduly meagre.

The claimant, a pillion rider injured in a road accident on 29 January 2018, sought compensation under the Motor Vehicles Act.

The Motor Accident Claims Tribunal found the car driver negligent and awarded Rs.14,04,015, including compensation for 30% functional disability, calculated using a monthly income of Rs.6,500, 40% future prospects and a multiplier of 15.

The claimant appealed under Section 173 of the Act, seeking enhancement, principally disputing the income assessment and the treatment of her disability.

1. Whether the Tribunal’s assessment of the claimant’s functional disability at 30%, and its use of the multiplier method, warranted interference.

2. Whether the monthly income of Rs.6,500 was inadequate and the compensation required enhancement.

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

Under National Insurance Company Ltd. v. Pranay Sethi, future prospects are added to income when computing compensation; the Court applied a 40% addition.

Under Sarla Verma v. Delhi Transport Corporation, the appropriate multiplier is selected by reference to the claimant’s age; the multiplier of 15 was applied to the claimant, aged 37.

Where injuries result in functional disability and loss of earning capacity, compensation may be calculated using the multiplier method.

The Medical Board assessed the claimant’s disability at 45%, and the Tribunal had found that her injuries impaired her ability to perform daily activities.

The High Court nevertheless upheld the Tribunal’s assessment of 30% functional disability and its use of the multiplier method, finding no basis to interfere on those grounds.

It considered the Tribunal’s monthly income assessment of Rs.6,500 too low given the claimant’s age and the 2018 accident, and increased it to Rs.10,000.

Applying 40% future prospects, 30% functional disability and a multiplier of 15, it recalculated disability compensation as Rs.7,56,000; the other heads were left unchanged.

The total award was enhanced from Rs.14,04,015 to Rs.16,68,615, with interest at 7.5% per annum from the date of filing the claim petition until deposit.

The insurer was directed to deposit the amount, less any sum already deposited, within six weeks of receiving the judgment; the Tribunal’s other directions remained unaltered.