Despite Same Salary, Karnataka HC Awards Teacher ₹55,296 For 24% Disability’s Employment-Market Handicap

The claimant, aged 33 at the time of the accident, sustained injuries in a road accident on 9 August 2015 involving a lorry.

He was employed as a teacher and claimed compensation for his injuries and resulting disability.

The Motor Accidents Claims Tribunal awarded ₹5,06,759, including medical expenses, pain and suffering, loss of income during treatment, and future medical expenses, but did not award compensation for loss of future income due to disability because the claimant continued working and received the same salary.

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

Section 173(1) of the Motor Vehicles Act provides for an appeal against an award of the Claims Tribunal.

Under Raj Kumar v. Ajay Kumar, a tribunal must assess whether permanent disability affects or is likely to affect the claimant’s earning capacity; medical disability alone does not automatically establish the extent of economic loss.

The Court also applied Dr. Yashwant Dongre v. Salman Rasheed, which recognises that a claimant who remains in the same employment and at the same salary may nevertheless suffer a disadvantage in the labour market because of permanent disability, warranting a suitable award for reduced employment eligibility.

The Court referred to Soni Sharma, P. Dinesh Singh, Sandeep Rajendran and Nagaraju T.A. in considering the relationship between functional disability, occupation and earning capacity.

The medical evidence supported a finding of permanent whole-body disability, which the Court assessed at 24%.

Although the claimant remained a teacher and his salary had not decreased, the Court held that his disability could place him at a disadvantage in retaining or obtaining employment; relying on Yashwant Dongre, it awarded compensation for that employment-market handicap rather than treating the claimant as having an actual current reduction in salary.

Using monthly income of ₹12,000, age 33 and multiplier 16, the Court calculated disability-related loss at ₹5,52,960 and awarded an additional 10%—₹55,296—for reduced employment eligibility.

It also enhanced compensation after considering the injuries, 25-day hospital admission, period of recovery and doctors’ evidence concerning future surgery.

The Court enhanced the total compensation to ₹6,66,455, an increase of ₹1,59,696 over the Tribunal’s award.

The enhanced amount carries interest at 6% per annum from the date of the petition until realization, except that no interest is payable on future medical expenses.

The insurer was directed to deposit the enhanced compensation with interest within six weeks, and the claimant was entitled to release of the entire enhanced amount.