Multiplier-based compensation for permanent disability precludes a separate award for future loss of earning power.

On 15 November 2022, the appellant, a tailor riding a motorcycle, was injured when it collided with an MTC bus.

The Tribunal found the bus driver negligent and assessed the claimant’s permanent locomotor disability at 70%.

It applied a multiplier of 15, fixed monthly income at ₹16,500, and awarded total compensation of ₹31,41,600.

The claimant appealed, seeking enhancement, including recognition of 100% functional disability and an increased income assessment

Whether the Tribunal’s assessment of the claimant’s disability at 70%, rather than 100% functional disability, and its assessment of monthly income required interference.

Whether the compensation awarded under the relevant heads was inadequate and required enhancement.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Motor Accidents Claims Tribunal.

In assessing compensation for permanent disability, the Court applied the multiplier method and considered the claimant’s income, disability percentage, age, and future prospects.

It referred to National Insurance Company Limited v. Pranay Sethi, which the Tribunal had relied on to add 40% towards future prospects.

The Court also applied the principle that compensation should not be duplicated: having awarded compensation under the disability head, it removed the separate award for future loss of earning power and placed that amount under loss of amenities.

The Court found no basis to disturb the Tribunal’s 70% disability assessment, which was supported by the Medical Board’s certificate; it did not accept the claimant’s contention that her disability should be treated as 100% functional disability.

However, given the 2022 accident, the cost of living, and the claimant’s occupation, it considered the Tribunal’s monthly income assessment of ₹16,500 inadequate and raised it to ₹18,000.

Applying 40% future prospects, a multiplier of 15, and 70% disability, the Court recalculated compensation under disability at ₹31,75,200.

It also increased transportation, extra-nourishment, and attendant charges, and reclassified the ₹1,00,000 awarded for future loss of earning power as compensation for loss of amenities to avoid duplication.

The total compensation was enhanced from ₹31,41,600 to ₹34,51,200, with interest at 7.5% per annum from the date of the claim petition until deposit, subject to the exclusion of interest for the 117-day delay period.

The respondent was directed to deposit the amount, less any sum already deposited, within six weeks; the claimant was permitted to withdraw it subject to the stated directions.