Loss of future income must include 10% future prospects when assessing motor accident compensation.

The claimant sustained multiple fractures and a brachial plexus injury in a road traffic accident on 1 June 2023, allegedly caused by the rash and negligent driving of a tractor.

He sought compensation before the MACT, Mysuru, which assessed his functional disability at 100% and awarded ₹29,09,761, including ₹17,28,000 for loss of future earnings, ₹1,00,000 for attendant and related expenses, and ₹7,81,761 for medical expenses.

The claimant appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

Whether the compensation awarded by the Tribunal for loss of future income required enhancement by reassessing the claimant’s notional income.

Whether the amounts awarded for attendant, conveyance, food and nourishment expenses required enhancement in light of the claimant’s hospitalisation.

The appeal was brought under Section 173(1) of the Motor Vehicles Act, 1988, which provides for an appeal against an award of the Claims Tribunal.

In assessing compensation, the Court applied the multiplier method to calculate loss of future income, using the claimant’s monthly income, a 10% addition, the multiplier appropriate to his age, and the assessed functional disability.

It adopted the Karnataka State Legal Services Authority’s 2023 notional-income figure of ₹16,250 per month and assessed attendant and related expenses at ₹1,000 per day for the period of hospitalisation.

The Court upheld the Tribunal’s use of multiplier 9, given the claimant’s age of 56 at the time of the accident, and its finding of 100% functional disability.

It substituted the Tribunal’s monthly income figure of ₹16,000 with the KSLSA figure of ₹16,250 and added 10%, calculating future loss as ₹17,875 × 12 × 9 × 100% = ₹19,30,500.

It also found that 145 days of hospitalisation justified attendant, conveyance, food and nourishment expenses of ₹1,45,000, rather than ₹1,00,000.

The Court otherwise left the awards for pain and suffering, loss of amenities and medical expenses undisturbed.

It awarded the claimant an additional ₹2,47,500 with interest at 6% per annum from the date of the petition until realization, directing the insurer to deposit the enhanced amount with interest before the Tribunal within six weeks.

The claimant was entitled to release of the entire enhanced compensation.