In the absence of functional disability, permanent disability compensation may be assessed using the percentage method.

On 25 October 2013, the minor claimant, aged approximately 13 years, was riding his bicycle on Raja Annamalai Road, Chennai, when a motorcycle bearing Registration No. TN 05 AT 8066, allegedly driven rashly and negligently, collided with him, causing injuries to his left forearm.

The first respondent was the motorcycle’s owner and the second respondent was its insurer.

The insurer denied the manner of accident, the claimant’s injuries and expenses, and alleged contributory negligence on the claimant’s part.

The Motor Accident Claims Tribunal relied on the claimant’s evidence and the FIR to find the motorcycle rider negligent.

The Medical Board assessed the claimant’s permanent disability at 6%.

Applying the percentage method at Rs.3,000 per percentage of disability, the Tribunal awarded Rs.71,000 under various heads, including Rs.18,000 for permanent disability, Rs.15,000 for pain and suffering, and Rs.10,000 for extra nourishment.

The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement.

Whether the Tribunal erred in applying the percentage method, rather than the multiplier method, for assessing compensation for the claimant’s 6% permanent disability?

Whether the compensation awarded under pain and suffering, extra nourishment, and the other heads was inadequate and required enhancement?

The appeal was considered under Section 173 of the Motor Vehicles Act, 1988, which permits an appeal against an award of the Motor Accident Claims Tribunal.

For non-functional or partial permanent disability, compensation may be assessed using the percentage method rather than the multiplier method where the evidence does not establish functional disability affecting earning capacity.

The Court applied M. Chinnathambi v. S. Deepa and Another, 2020 (1) TNMAC 617, under which Rs.3,000 may be awarded for each percentage of disability in the relevant circumstances.

Compensation under pain and suffering and other incidental heads must be reasonable and proportionate to the injuries and treatment proved.

The Court upheld the finding of negligence, there being no dispute regarding the accident or the negligence attributed to the motorcycle rider.

Although the Medical Board assessed 6% disability, the disability consisted of post-traumatic sequelae relating to the left upper limb and did not constitute functional disability affecting the claimant’s earning capacity.

Accordingly, the Tribunal was justified in adopting the percentage method and awarding Rs.18,000 at Rs.3,000 per percentage, rather than applying the multiplier method.

However, the claimant had suffered a fracture and had undergone treatment, and the Court considered the award of Rs.15,000 for pain and suffering inadequate.

It therefore enhanced that component to Rs.25,000.

The Court also found that the award of Rs.10,000 for extra nourishment was not proper and enhanced it to Rs.25,000, while affirming the amounts under the remaining heads.

The Court rejected the challenge to the percentage-based assessment of disability and maintained the award of Rs.18,000 under that head.

It enhanced compensation for pain and suffering from Rs.15,000 to Rs.25,000 and for extra nourishment from Rs.10,000 to Rs.25,000.

The total compensation was consequently enhanced from Rs.71,000 to Rs.96,000, with interest at 7.5% per annum from the date of filing of the claim petition until deposit.

The insurer was directed to deposit the enhanced award, together with interest and costs and after adjusting any amount already deposited, within four weeks.

The claimant was permitted to withdraw the amount subject to payment of requisite court fee and compliance with the Tribunal’s directions regarding disbursement.