Future prospects must be added to notional income when calculating compensation for permanent functional disability.

On April 23, 2002, the appellant, a 30-year-old diamond cutter, was traveling in a metador (Reg. No. GJ-7-Y-2208) when the driver’s excessive speed caused an accident.

The appellant sustained fractures to his leg and waist, necessitating hospitalization from April 23, 2002, to May 9, 2002.

He filed a claim petition seeking Rs. 4,50,000/- in compensation.

The Motor Accident Claims Tribunal (Main), Amreli, awarded Rs. 42,341/- with 9% interest via judgment dated July 31, 2012.

Dissatisfied with the quantum, the claimant appealed for enhancement.

1. Whether the compensation awarded by the Tribunal was just and adequate, specifically regarding future prospective income and non-pecuniary heads.

2. Whether the income assessed and the functional disability applied were consistent with the evidence on record.

The Court applied the principles of the Motor Vehicles Act, 1988, specifically regarding the assessment of "just compensation."

It utilized the "multiplier method" for calculating future loss of income, incorporating a 40% addition for "future prospects" for a self-employed person/fixed-wage earner under the age of 40.

The Court also applied standard practices for quantifying non-pecuniary damages (Pain, Shock, and Suffering) and pecuniary damages including medical expenses, special diet, and attendant charges based on the nature of injuries and duration of treatment.

The Court found the Tribunal’s assessment of monthly income at Rs. 2,400/- correct, as it aligned with minimum wages for skilled workers in 2002.

The High Court determined the Tribunal erred by failing to award "future prospects". By adding 40% to the income (totaling Rs. 3,360/- per month), maintaining 6% functional disability, and applying a multiplier of 17, the future loss of income was recalculated to Rs. 41,126/-.

Considering the severity of the fractures and the 16-day hospitalization, the Court found the original awards for pain and suffering (Rs. 5,000/-) and ancillary charges (Rs. 3,000/-) to be "meagre" and enhanced them to reflect the actual hardship and a three-month recovery period for actual loss of income.

This resulted in an additional grant of Rs. 35,985/-. The Court ordered the insurance company to deposit the additional amount with 9% interest from the date of the claim petition within six weeks. The Tribunal was directed to disburse the amount to the appellant after verifying court fees.