Future prospects must be added at 40% when assessing compensation for a 30-year-old heavy-vehicle driver.

On 26 January 2007, the appellant was driving a Jeep/Tavera when a truck allegedly driven rashly and negligently collided with it, causing him grievous injuries and multiple fractures.

The appellant, aged approximately 30 years and working as a heavy-vehicle driver, filed Motor Accident Claim Petition No. 724 of 2007.

The Motor Accident Claims Tribunal, Panchmahals at Godhra, awarded ₹2,50,266 with interest at 9% per annum, but excluded interest for the period from 23 February 2018 to 31 March 2023, during which the claim petition had been dismissed for want of prosecution.

The appellant challenged the award solely on the ground of quantum and denial of interest for the aforesaid period.

Whether the appellant’s monthly income, future prospects, and compensation under the heads of loss of income, pain and suffering, and special diet/transportation required enhancement?

Whether interest could be disallowed for the period from 23 February 2018 to 31 March 2023 because the claim petition had been dismissed for want of prosecution?

Whether interest on the enhanced compensation was subject to exclusion for the 692-day delay in filing the appeal?

The Court applied the principles governing “just compensation” in motor accident claims.

It reassessed the appellant’s income by considering his occupation as a heavy-vehicle driver and relied on Minu Rout v. Satya Pradyumna Mohapatra, 2013 (10) SCC 695, concerning assessment of a driver’s income.

It applied National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, and Sidram v. Divisional Manager, United India Insurance Co. Ltd., (2023) 3 SCC 439, for adding 40% towards future prospects where the claimant was around 30 years old.

Loss of future income was calculated by applying the appropriate multiplier of 17 to the assessed income and functional disability of 17%.

The Court further held that interest could not be excluded for the period during which the claim petition remained dismissed when the restoration order did not direct such exclusion; however, interest on the enhanced amount was excluded for the 692-day delay in filing the appeal, in accordance with the order condoning delay.

The Court found that the appellant’s occupation as a heavy-vehicle driver justified reassessing his monthly income from ₹2,400 to ₹4,000.

Since he was approximately 30 years old, 40% was added for future prospects, resulting in a monthly income of ₹5,600.

Applying 17% functional disability, a multiplier of 17, and the prescribed annualisation formula, the Court calculated future loss of income at ₹1,94,208.

The actual loss of income for five months was enhanced to ₹20,000, while compensation for pain, shock and suffering was increased to ₹30,000 and compensation for special diet, transportation and related expenses to ₹25,000, considering the multiple fractures, surgery and prolonged hospitalisation.

Medical expenses of ₹1,20,034 were left undisturbed.

The total compensation was consequently recalculated at ₹3,89,242, resulting in an additional award of ₹1,38,976.

Regarding interest, the Court held that the Tribunal’s exclusion of interest from 23 February 2018 to 31 March 2023 was unsustainable because the High Court’s restoration order in SCA No. 5739 of 2023 contained no direction excluding interest for that period.

Nevertheless, interest on the additional compensation was denied for the 692-day delay in filing the appeal, as the delay had been condoned subject to that condition.

The total compensation was enhanced from ₹2,50,266 to ₹3,89,242, granting the appellant additional compensation of ₹1,38,976.

The exclusion of interest for the period from 23 February 2018 to 31 March 2023 was set aside.

Respondent No. 2, the concerned insurer, was directed to deposit the additional compensation with interest at 9% per annum from the date of filing of the claim petition until realization, excluding the 692-day appellate delay, within six weeks.

The Tribunal was directed to disburse the amount after verification and deduction of any deficit court fees.