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2026 Supreme(Online)(Del) 6490

IN THE HIGH COURT OF DELHI AT NEW DELHI
Anish Dayal, J
National Insurance Company Ltd – Appellant
Versus
Raj Singh – Respondent
MAC.APP. 981/2013 | MAC.APP. 335/2014



Advocates:
For the Appellants/Petitioners: Neerja Sachdeva, Manish Maini, Aastha Chauhan, R.K. Jain
For the Respondents: Manish Maini, Aastha Chauhan, R.K. Jain, Neerja Sachdeva

Compensation in motor accident cases must reflect actual disability and proven medical needs, without deducting statutory pension benefits as pecuniary advantages. Income assessments must include all service-related allowances, and long-term medical aid costs must be calculated based on the victim's life expectancy and the replacement cycle of devices.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 168 and 173 - Injury in motor accident - Quantum of compensation - Functional disability - Assessment of compensation for medical aids - Exclusion of non-evidenced income - Inclusion of specific allowances in benchmark income - Calculation of future prospects for public sector employees - Exemption of pensionary benefits from deduction - Principles of assessment of functional disability vis-a-vis permanent disability - Need to apply empirical basis for long-term expenses like medical aids. (Paras 5.1, 5.2, 5.3, 5.4, 5.5, 6)

Facts of the case:
A claimant, employed as a government official, suffered a collision resulting in amputation of a lower limb. Appeal and cross-appeal were filed challenging the quantum of compensation awarded by the tribunal. The insurer sought reduction on grounds of excessive functional disability assessment, lack of evidence for agriculture income, and inclusion of certain allowances, while seeking to deduct pension benefits. The claimant sought enhancement, specifically for prosthetic replacement costs over a lifetime, and for higher income evaluation.

Findings of Court:
The court held that functional disability must align with medical certificate guidelines unless compelling reasons exist. It determined that long-term medical aid expenses, specifically for prosthetic limb replacements, must be calculated based on the victim's age and the estimated lifespan of the devices. The court ruled that non-evidenced speculative income must be excluded. Furthermore, income for compensation purposes should include specific service-related allowances that are part of the family's financial benefit, and pensionary benefits cannot be treated as deductible pecuniary advantages as they are statutory rights unrelated to the accident. Compensation was subsequently recomputed to account for these adjustments.

Issues: The main questions addressed were the determination of functional disability, the calculation of expenses for long-term medical support, the admissibility of speculative agriculture income, the inclusion of service allowances in salary assessments, and whether pensionary benefits qualify as deductible pecuniary advantages.

Ratio Decidendi: Assessing functional disability requires adherence to medical certification; long-term medical expenses must be projected based on life expectancy and equipment durability. Statutory retirement benefits and pension payments are not 'pecuniary advantages' and cannot be deducted from compensation. Future earning potential post-retirement in a public sector job is a valid ground for compensation through the application of an appropriate multiplier.

Result: Appeals disposed of; total compensation enhanced.

Table of Content
1. summary of accident facts and cross-appeals regarding tribunal award. (Para 1 , 2)
2. parties' conflicting contentions on disability assessments and income calculation. (Para 3 , 4)
3. determination of compensation for prosthetic, disability, and income components. (Para 5)
4. statutory benefits like pension are not deductible from compensation. (Para 6)
5. maintenance of non-pecuniary damages and final compensation recomputation. (Para 7 , 8)
6. disbursement directions and procedural orders for compensation deposit. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)

JUDGMENT

ANISH DAYAL, J (ORAL)

1. These cross-appeals have been filed challenging the Award dated 11th September 2013 passed by the Motor Accident Claims Tribunal, Dwarka Courts, New Delhi (‘MACT’) in MACT No.32/2013. MAC.APP. 981/2013 has been filed by the Insurance Company seeking reduction of the compensation, whereas MAC.APP. 335/2014 has been filed by claimant seeking enhancement of compensation.

2. The accident occurred on 21st June 2012 at around 11: 25 PM, when the claimant driving his motorcycle bearing registration no.DL-1S-S-1223 near Dwarka, New Delhi suffered a collision with the Maruti Swift car bearing registration no.HR-26-AW-9912 (offending vehicle), driven by Mr. Devinder Kumar. Claim petition was filed, which resulted in award of compensation of Rs.24,02,832/- along with interest @7.5% from the date of filing of claim petition till its realization.

3. Ms. Sachdeva, on behalf of the insurance company, has raised the following issues:

i. While the Disability Certificate assessed disability at 60%, functional disability was taken by the MACT at 70%.

ii. Amount of Rs.80,000/- each was awarded towards cost of 2 prosthetic and Rs.50,000/- for maintenance, whereas there is no evidence led in that respect.

iii. Rs. 50,000/- awarded towards agriculture income; however, there is no evidence to support it. In fact, impugned order mentions that the claimant was Head Constable in the Delhi Police and could not have continued the agriculture work on his own.

iv. Future prospects ought not to have been granted, since in paragraph 59 of the impugned award it had been noted that the Head Constable is earning the same income as he was earning at the time of the accident.

4. Mr. Manish Maini, counsel for the claimant, to counter these submissions and canvass his plea for enhancement, places the following submissions:

i. Functional disability may be taken at 60%, considering that the Disability Certificate itself certifies permanent disability at 60% with respect to the whole body. Though there was an amputation of the right limb below the knee.

ii. As regards the prosthetic, he states that, as per the Supreme Court’s judgment of Mohd. Sabeer v. U.P. SRTC (2023) 20 SCC 774, the amount of Rs.80,000/- was awarded based on the evidence of PW8, Shri Kapil Kaushik from M/s Endolite India Ltd., who stated that Rs. 80,000/- are spent on the prosthetic, and the life of prosthetic is about 7 to 8 years. He, therefore, stated that since the age of the injured was 47 years of age at the time of accident, and keeping an average of 70 years of age as per Mohd. Sabeer (supra), he would be required a prosthetic for about 23 years, and, therefore, with the life expectancy of an artificial limb, 7 to 8 years, he would require 4 prosthetics in his lifetime.

iii. He seeks enhancement of the prosthetic repair amount from Rs.50,000/- to Rs.1,00,000/- for four prosthetics.

iv. He points out paragraph 63 of the impugned award, where the income has been first deducted by 50% and then the disability of 70% has been multiplied, which amounts to duplication in the reduction. He states that the impugned order is erroneous in the matter of this calculation.

v. The income of claimant should have been taken as Rs.31,629/-, including the allowances on account of transport and ration money, however, deducting the amounts on account of washing and convenience allowance, which will not form

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