Severe permanent disability warrants ₹3 lakh compensation for loss of marriage prospects.

The appellant-claimant, aged 23 years, sustained grievous injuries in a motor accident on 1 July 2021, resulting in a left transfemoral amputation and permanent disability.

The Claims Tribunal, in Claim Case No. 763/2021, assessed his notional income at ₹7,800 per month and, treating his loss of earning capacity as 100%, awarded total compensation of ₹41,12,009 by award dated 20 November 2023.

The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on the grounds that his income should have been assessed at ₹9,200 per month and that compensation should be granted for loss of marriage prospects.

The insurer opposed the appeal and contended that the Tribunal had awarded just compensation.

1. Whether the claimant’s monthly income should have been assessed at ₹9,200, being the applicable minimum wage for an unskilled labourer on the date of the accident, instead of ₹7,800?

2. Whether the claimant was entitled to an addition of 40% towards future prospects and a corresponding reassessment of compensation for loss of earning capacity?

3. Whether the claimant, being unmarried and having suffered a permanent left-leg amputation, was entitled to compensation for loss of marriage prospects?

The Court exercised appellate jurisdiction under Section 173 of the Motor Vehicles Act, 1988.

For computation of loss of earning capacity, it applied the minimum-wage guidelines prescribing ₹9,200 per month for an unskilled labourer on 1 July 2021.

It relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, for adding 40% towards future prospects and applying the multiplier method based on the claimant’s age.

In assessing the claimant’s functional disability, the Court accepted that the amputation and medical evidence justified treating the reduction in earning capacity as 100%, notwithstanding the medical-board disability certificate of 80%.

For loss of marriage prospects, the Court relied on Divya v. National Insurance Co. Ltd., (2024) 12 SCC 436, read with Kajal v. Jagdish Chand, (2020) 4 SCC 413, recognising ₹3,00,000 as appropriate compensation where the claimant’s physical condition materially impaired marriage prospects.

The claimant’s income was unsupported by documentary evidence; nevertheless, the Court held that the applicable minimum wage on the accident date provided a proper basis for reassessment and increased the monthly income from ₹7,800 to ₹9,200.

Applying 40% future prospects, the monthly income became ₹12,880 and the annual income ₹1,54,560.

Since the claimant was 23 years old, the Court applied a multiplier of 18 and, treating the loss of earning capacity as 100% due to the transfemoral amputation and resulting functional limitations, calculated the loss of future earning capacity at ₹27,82,080.

The Court further found that the claimant’s young age, unmarried status, and permanent physical impairment justified a separate award of ₹3,00,000 for loss of marriage prospects under the principles recognised in Divya.

The remaining heads of compensation awarded by the Tribunal were left undisturbed.

The Court enhanced the compensation for permanent disability from ₹23,58,720 to ₹27,82,080 and awarded an additional ₹3,00,000 for loss of marriage prospects.

The total compensation was consequently enhanced from ₹41,12,009 to ₹48,35,369, resulting in an enhancement of ₹7,23,360.

The enhanced amount was directed to carry interest at 6% per annum from the date of filing of the claim application until realisation.

The Tribunal’s award was modified to that extent, with the remaining conditions kept intact.

The Registry was also directed to communicate the enhanced amount to the claimant in Hindi, with assistance from paralegal workers where necessary.