Future prospects must be included when calculating compensation for personal injury claimants.

The claimant was injured when a car allegedly driven rashly and negligently collided with his scooter on 22 April 2009. He sought compensation under Section 166 of the Motor Vehicles Act.

The Tribunal found the car driver negligent and awarded ₹6,06,700 with interest at 6% per annum.

The claimant appealed under Section 173(1), seeking enhancement, principally on the grounds of income, disability, future prospects, pain and suffering, and loss of amenities.

Whether the claimant was entitled to enhancement of compensation, including an addition for future prospects and increased awards for pain and suffering and loss of amenities.

The claim arose under Section 166 of the Motor Vehicles Act, and the appeal was brought under Section 173(1) of that Act.

Relying on Sidram v. Divisional Manager, United India Insurance Co. Ltd., (2023) 3 SCC 439, the Court applied the principle that future prospects must also be considered in assessing compensation for personal injury.

Compensation for loss of earning capacity was assessed by applying the relevant monthly income, future prospects, multiplier, and functional disability.

The Court found no basis to increase the Tribunal’s monthly income assessment of ₹10,000: although the claimant asserted higher earnings, his income-tax return showed net annual income of ₹1,33,000, and business expenses had to be considered.

It also upheld the 20% functional disability assessment, notwithstanding the medical evidence of 75% disability to the claimant’s right eye/ear, having regard to his work as a businessman.

However, applying Sidram, the Court added 25% future prospects for the 40-year-old self-employed claimant and assessed future loss of income at ₹4,50,000.

In light of the diplopia, difficulty controlling rapid eye movement, and temporal bone fracture, it found the existing awards for pain and suffering and loss of amenities inadequate.

The insurer was directed to deposit the enhanced compensation before the Tribunal within six weeks, after which the entire enhanced amount with interest was to be released to the claimant.