P&H HC Raises Motor Accident Compensation From ₹72,000 To ₹1,98,984 For 26-Year-Old With 8% Leg Disability

In brief

The question

Whether the Tribunal’s compensation for disability, pain and suffering, medical and incidental expenses, and loss of income during treatment was inadequate and required enhancement

The court held

The appeal was allowed.

It also directed

The Court enhanced the total compensation from ₹72,000 to ₹1,98,984, an increase of ₹1,26,984, with interest at 7.5% per annum on the enhanced amount from the date of filing the claim petition until realization.

Liability remained as determined in the Tribunal’s award.

01Facts

The appellant sustained multiple injuries, including fractures of both bones of his left leg, in a motor-vehicle accident on 25 May 2000.

pp. 1–3

The Motor Accident Claims Tribunal awarded him ₹72,000, including compensation for medical expenses, pain and suffering, and loss of income due to disability.

pp. 1–3

The appellant appealed, seeking enhancement; the respondents did not challenge the findings on negligence.

pp. 1–3

The High Court considered the nature of the injuries, medical evidence, and an assessed permanent disability of 8%.

pp. 3–4

02Issues

i.Whether the Tribunal’s compensation for disability, pain and suffering, medical and incidental expenses, and loss of income during treatment was inadequate and required enhancement

pp. 2–3, 5–6

ii.Whether future prospects and an appropriate multiplier should be included when calculating the appellant’s loss of earning capacity

p. 2, 5

03Law Applied

The Court applied National Insurance Company Ltd. v. Pranay Sethi & Ors., 2017 (16) SCC 680, for adding 40% future prospects in calculating loss of earning capacity, and Smt. Sarla Verma & Ors. v. Delhi Transport Corporation & Anr., 2009 (6) SCC 121, for selecting the multiplier by reference to the claimant’s age.

p. 5

The Court assessed loss of earning capacity by applying the functional disability percentage to income inclusive of future prospects and multiplying the resulting monthly loss by 12 and the applicable multiplier.

p. 5

04Reasoning

The Court affirmed the Tribunal’s assessment of 8% functional disability.

p. 5

It fixed the appellant’s monthly income at ₹2,200, based on the minimum wage for a skilled worker, added 40% future prospects, and applied the multiplier of 17 applicable to his age of 26, producing ₹50,184 for loss of earning capacity.

p. 5

Given the injuries and treatment, the Court allowed four months’ loss of income, amounting to ₹8,800, and increased compensation for medical and incidental expenses to ₹40,000 and for pain and suffering to ₹50,000.

pp. 4–6

It also awarded ₹50,000 for loss of future amenities and prospects, but declined future medical expenses for want of evidence.

pp. 4–6