Future prospects must be awarded for permanent functional disability, even without a permanent income source.

On 20 April 2018, the claimant was travelling in auto-rickshaw No. GJ-24-W-2011 while delivering water jugs in the course of his employment. The rickshaw was allegedly driven rashly and negligently at excessive speed, lost control, and overturned near Sananagar Society. The claimant sustained serious spinal injuries and fractures, underwent treatment at several hospitals, and was ultimately rendered 100% functionally disabled and paralysed.

The Motor Accident Claims Tribunal, Patan, in MACP No. 28 of 2019, awarded ₹34,26,620 with interest at 9% per annum. The award comprised ₹19,68,870 for future loss of income, ₹2,00,000 for pain and suffering, ₹3,60,000 for future attendant charges, ₹50,000 for special diet and transportation, ₹43,750 for actual loss, and ₹8,04,000 towards medical expenses.

The claimant challenged the award principally for non-grant of future prospects and inadequate future attendant charges.

The Court relied on M. Paramesh v. VRL Logistics Ltd. & Anr., 2026 LiveLaw (SC) 641, for the principle that future prospects must be added while calculating compensation where the claimant has suffered substantial functional disability; the addition is to be calculated on the recalculated loss of earning capacity.

It applied a 40% addition towards future prospects to the established income.

Relying on Bhavik @ Bhavin Dwarkadas Vithlani v. Ganpatsinh Manubha Jadeja & Anr., 2021 (3) GLR 2125, the Court held that future attendant expenses may be assessed with reference to the applicable minimum wages, and the appropriate multiplier may be applied to the annual expense.

Under R.D. Hattangadi v. M.S. Pest Control (India) Pvt. Ltd., 1995 (1) SCC 551, interest is not payable on compensation awarded for future expenditure because such expenditure has not accrued on the date of the award.

The assessment of compensation was governed by the principles of just, adequate and fair compensation under the motor accident compensation law.

The Tribunal had accepted the claimant’s annual income at ₹1,31,258, his age at 39 years, 100% functional disability, and a multiplier of 15, but had omitted future prospects. Applying M. Paramesh, the High Court added 40% future prospects, increasing the annual income to ₹1,83,761 and awarding ₹27,56,415 for future loss of income.

Given the claimant’s prolonged hospitalisation, spinal injuries and continuing paralysis, the Court enhanced pain, shock and suffering from ₹2,00,000 to ₹4,00,000.

For future attendant charges, it applied the 2018 minimum wage of ₹8,200 per month and the multiplier of 15, resulting in ₹14,76,000, instead of the Tribunal’s calculation of ₹3,60,000 based on ₹2,000 per month.

The amount for special diet and transportation was enhanced from ₹50,000 to ₹1,00,000 owing to the prolonged treatment and multiple hospital transfers.

Conversely, the Court deleted the ₹43,750 awarded for actual loss, holding that such compensation was inappropriate where the claimant had suffered 100% functional disablement.

Medical expenses of ₹8,04,000 were maintained.

The total compensation was consequently recalculated at ₹55,36,415.

Consistent with R.D. Hattangadi, the Court excluded the future attendant-charge component from the interest calculation.

The claimant’s total compensation was enhanced from ₹34,26,620 to ₹55,36,415, resulting in an additional award of ₹21,09,795.

The enhanced amount attributable to future attendant charges, ₹14,76,000, was directed not to carry interest; the balance of the enhanced compensation was to carry interest at 9% per annum from the date of the claim petition until realisation.

The Insurance Company was directed to deposit the enhanced amount within 12 weeks, and the Tribunal was directed to disburse the awarded amount to the claimant after due verification and procedure.