Functional disability for future income loss must account for the claimant’s occupation.

The claimant sought compensation for injuries sustained in a road accident on 14 June 2022, allegedly caused by the rash and negligent driving of a lorry.

The Tribunal awarded global compensation of ₹1,00,000 with interest at 6% per annum.

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

The High Court considered the claimant’s age as 28 at the time of the accident, his tibial fracture, seven-day hospital admission, medical expenses, and assessed disability.

Whether the Tribunal’s award of ₹1,00,000 required enhancement in light of the claimant’s injuries, disability, and resulting losses

Whether the claimant was entitled to interest on the enhanced compensation for the period of delay in filing the appeal

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988, which provides for an appeal against an award of the Claims Tribunal.

In assessing compensation, the Court applied the multiplier method to calculate loss of future income, used the Karnataka State Legal Services Authority’s notional income of ₹15,500 per month for 2022, and assessed functional disability by reference to the claimant’s occupation and medical evidence.

The Court identified no precedent as the basis for its assessment.

The Court found that the claimant, a mason, had sustained a right lateral tibial condyle chip fracture and that the doctor had assessed 28% disability to the right lower limb.

Considering the claimant’s occupation, the Court treated functional disability as one-third of the assessed disability, or 9%, and calculated future income loss using the ₹15,500 monthly notional income and multiplier 17, resulting in ₹2,84,580.

It additionally assessed pain and suffering, loss of amenities, three months’ lost income, medical expenses, and attendant, conveyance, food, and nourishment charges, bringing total compensation to ₹4,55,391.

The Court denied interest for the 263-day delay in filing the appeal, consistent with its earlier order.

The claimant was awarded enhanced compensation of ₹3,55,391 over the Tribunal’s award, with interest at 6% per annum from the date of the petition until realization, except for the 263-day appeal-delay period.

The insurer was directed to deposit the enhanced compensation and interest within six weeks, and the claimant was permitted to receive the entire enhanced amount.