Partial permanent disability warrants percentage-based compensation, not multiplier-based loss of earning capacity.

Senthilkumar claimed compensation for injuries sustained when a Xylo car insured by National Insurance Company collided with his motorcycle on 26 September 2015.

The Motor Accident Claims Tribunal found the car driver negligent and awarded ₹25,29,066 with interest at 7.5% per annum.

The insurer appealed, challenging both negligence and the quantum, particularly the use of the multiplier method for a medical-board assessment of 58% partial permanent disability.

The High Court upheld the finding of negligence, but recalculated compensation, replacing the multiplier-based award for loss of earning capacity with an award based on the percentage of disability and adding compensation for loss of income during treatment.

1. Whether the Tribunal’s finding that the insured car’s driver was negligent was sustainable in the absence of evidence from the driver or other independent eyewitnesses.

2. Whether the Tribunal properly assessed compensation for the claimant’s 58% partial permanent disability by applying the multiplier method, and whether compensation was warranted for loss of income during treatment.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988.

On assessment of disability, the Court referred to Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, concerning the assessment of functional disability and compensation for loss of earning capacity.

The Court held that, on the facts before it, the claimant’s 58% partial permanent disability did not justify the Tribunal’s multiplier-based award for loss of earning capacity; instead, it applied a rate of ₹8,000 per percentage of disability.

The Court declined to disturb the negligence finding because the FIR identified the insured vehicle’s driver as the accused, the claimant testified as P.W.1, and neither the insurer nor the vehicle owner examined the driver or an independent eyewitness.

The insurer’s investigation report, without supporting witness testimony, did not persuade the Court to reverse the Tribunal’s finding.

On quantum, the Court considered the 58% assessment to be partial permanent disability and concluded that the multiplier method used by the Tribunal was not sustainable in these circumstances.

It substituted ₹4,64,000 (58 × ₹8,000) for loss of earning capacity and awarded a further ₹60,000 for loss of income during treatment, while confirming the other heads of compensation.

The Court modified the award from ₹25,29,066 to ₹12,99,146, with interest at 7.5% per annum from the date of filing the claim petition until realisation.

The insurer was directed to deposit the modified amount, less any sum already deposited, within eight weeks; the claimant could withdraw the amount in accordance with the judgment.

No costs were awarded.