Functional disability must account for spinal and lower-limb injuries when assessing future income loss.

Girija appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement of compensation awarded by the V Additional District Judge and Additional MACT, Hassan, for injuries sustained in a road accident on 20 July 2021 involving a goods vehicle

The Tribunal awarded total compensation of ₹5,97,144, including ₹2,79,000 for future loss of income, and directed the insurer to pay interest at 6% per annum

The claimant challenged the adequacy of the award.

The High Court heard the appeal with the consent of counsel for the claimant and insurer

Whether the compensation awarded for the claimant’s injuries and their consequences required enhancement

Whether the claimant’s functional disability should be assessed at 15% for calculating future loss of income

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.

future loss of income is calculated by applying the appropriate monthly income, multiplier and functional disability; and compensation under other heads should reflect the injuries and their effects

The Court accepted the Tribunal’s use of a multiplier of 15 and notional monthly income of ₹15,000, but, considering the doctor’s evidence of disability to the lower limb and spine, assessed functional disability at 15% rather than the Tribunal’s whole-body disability assessment of 10.33%.

It therefore calculated future loss of income at ₹4,05,000 (₹15,000 × 12 × 15 × 15%).

Given the injuries and the need for at least six months’ rest, it enhanced compensation for pain and suffering, loss of amenities and laid-up-period income, while retaining the Tribunal’s amounts under the remaining heads.

It directed the insurer to deposit the enhanced amount with interest before the Tribunal within six weeks; the claimant was entitled to release of the entire enhanced compensation.