Motor accident claimants with disability exceeding 20% are entitled to 25% future prospects in calculating future income loss.

The claimant sought compensation for injuries sustained in a road traffic accident on 18 February 2022, allegedly caused by the negligent riding of a motorbike.

The Motor Accident Claims Tribunal awarded compensation of ₹13,20,252, including compensation for permanent disability based on monthly income of ₹11,983 and a 62% disability assessment.

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

By consent, the High Court took up the appeal for disposal at the admission stage.

Whether the compensation awarded by the Tribunal required enhancement, particularly in light of the applicable notional income and future prospects.

Whether the amounts awarded for pain and suffering, loss of amenities, and loss of income during the treatment period required enhancement.

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

In assessing compensation, the Court applied the Karnataka State Legal Services Authority’s notional monthly income of ₹15,500 for an accident occurring in 2022, retained the multiplier of 13 for the claimant’s age of 50, and applied 25% future prospects because the assessed disability exceeded 20%.

The judgment identifies no specific precedent for these principles.

The Court found that the Tribunal had used a monthly income below the applicable 2022 notional income and therefore recalculated loss of future income, retaining the Tribunal’s disability assessment and applying 25% future prospects.

The judgment records the disability as 62%, although the displayed calculation refers to 65%; the stated award of ₹18,73,950 corresponds to applying 62% with 25% future prospects.

In view of the claimant’s shoulder and head injuries, including haemorrhagic contusions and a temporal bone fracture, the Court enhanced compensation for pain and suffering and loss of amenities, and allowed three months’ income for the laid-up period.

It left medical expenses and incidental expenses unchanged.

It awarded the enhanced amount of ₹8,29,543 with interest at 6% per annum from the date of the petition until realisation, except for the 260-day delay period in filing the appeal.

The insurer was directed to deposit the enhanced compensation within six weeks; 50% of the enhanced amount was to be released to the claimant and the remaining 50% kept in a fixed deposit for three years.