Functional disability assessment must evaluate the impact on a claimant's earning capacity and occupational requirements. Compensation for future loss must reflect diminished employability and marketability of labour, irrespective of continued wage receipt, to ensure just and realistic reparation for permanent impairment.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 168 - Motor accident claim - Compensation - Assessment of disability - Functional disability vs. physical disability - Impact on earning capacity - Requirement to evaluate claimant’s pre-accident vocation and mobility requirements - Compensation for loss of future earning capacity is distinct from immediate salary loss - Just compensation must be fair, realistic, and proximate to actual loss. (Paras 9-11, 29-30)

(B) Compensation - Non-pecuniary damages - Pain and suffering, loss of amenities, and disfigurement - Court duty-bound to award just compensation irrespective of specific pleadings - Need for liberal and realistic approach to restore claimant as best as possible. (Paras 18, 21-23)

(C) Future Expenses - Cost of prosthetic limb - Necessity for regular replacement and maintenance - Calculation based on life expectancy - Duty to reimburse actual expenditures incurred during pendency of proceedings. (Paras 19-20, 26-27)

Facts of the case:
A claimant, employed as an officer of the state security organization, suffered a physical injury resulting in the amputation of a limb below the knee during the discharge of official duties. The tribunal awarded a lump sum amount as compensation. The appellant insurance company challenged the quantum, specifically disputing the assessment of functional disability at 70% and arguing against the inclusion of loss of future income since the claimant remained in service until superannuation.

Findings of Court:
The court upheld the assessment of functional disability as legitimate given the nature of the claimant's work which required mobility and standing. However, it held that the multiplier should be adjusted based on the remaining working life at the time of retirement. The court affirmed that loss of future earning capacity is a valid head of compensation even if the claimant continues in service, rejecting the notion that wage continuity negates the need for such damages. The court also enhanced compensation for prosthetic limbs and non-pecuniary damages, adhering to the principle of just compensation.

Issues: Whether the tribunal correctly assessed the claimant's functional disability, whether compensation for loss of future income is permissible when there is no current loss of salary, and the appropriate methodology for awarding costs toward long-term prosthetic maintenance and non-pecuniary damages.

Ratio Decidendi: The assessment of functional disability must focus on the impact on earning capacity and marketability of labour rather than mere medical percentage or immediate wage continuity. Permanent disability leads to reduced career progression and diminished future employability, justifying compensation via the multiplier method. Additionally, courts exercise their duty under the principle of just compensation to ensure claimants are adequately supported for medical needs including long-term maintenance of artificial aids.

Result: Appeal disposed of with the compensation amount modified and recalculated; insurance company directed to deposit balance amount.

Table of Content
1. factual basis for motor accident claim and tribunal finding. (Para 1 , 2 , 3 , 4 , 5)
2. challenge to quantum based on functional vs physical disability. (Para 6 , 7)
3. distinguishing between physical disability and impact on earning capacity. (Para 8 , 9 , 10 , 11)
4. application of uniform multipliers for public sector retirees. (Para 12 , 13 , 14 , 15 , 16 , 17)
5. obligation to provide 'just compensation' for lifelong prosthetic maintenance. (Para 18 , 19 , 20)
6. judicial duty to award fair non-pecuniary damages regardless of specific pleadings. (Para 21 , 22 , 23 , 24 , 25)
7. authority of the court to mandate disbursement and equitable restitution. (Para 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34)

JUDGMENT :

ANISH DAYAL, J.

1. This appeal has been preferred against the judgment dated 20th May 2016 passed by the Motor Accident Claims Tribunal (‘MACT’), East District, Karkardooma Courts, in MACT No. 413/2016, whereby the Tribunal allowed the claim of injured/claimant and awarded compensation of Rs.41,66,835/- along with interest @9% per annum from date of filing of petition.

The Incident

2. The accident occurred on 19th January 2014 at about 10:00 PM, when claimant and his colleague were on picket duty and were checking vehicles and barricades put on road. During checking, claimant tried to stop a Hyundai I-10 car bearing registration no. DL-4C-ND-3886 coming from Geeta Colony Side at high speed. The driver without stopping dashed the car into barricades and hit the claimant, who was standing near the barricades. As a result of accident claimant sustained crush injuries on his right leg along with multiple fractures. Claimant/injured was taken to LNJP hospital and his right leg below knee was amputated, the injured was later shifted to Max Hospital where he remained admitted from 21st January 2014 to 31st January 2014. FIR No. 42/14 was registered at PS Geeta Colony under Sections 279/338 of the India Penal Code, 1860, against driver of offending vehicle and subsequently chargesheet was filed against the driver.

3. As per the Disability Certificate annexed as Ex. PW1/3, physical disability was assessed at 70% in relation to right lower limb. At the time of accident, injured was 54 years of age and employed as Head Constable with Delhi Police, due to retire on 31st December 2018.

Impugned Award

4. As regards Issue no. 1, the Tribunal held that the lodging of the FIR and the filing of the chargesheet were sufficient to establish negligence on the part of the driver of the offending vehicle.

5. As regards Issue no. 2 concerning the quantum of compensation, the Tribunal assessed the functional disability at 70%, corresponding to the physical disability assessed at 70% in relation to the right lower limb. The salary of the claimant was assessed at Rs. 36,338/- after deduction of income tax and travel allowance. However, no future prospects were granted to the claimant. The multiplier of ‘11’ was applied to compute an amount of Rs. 33,37,631/- under the head of loss of future income. Compensation of Rs. 3,00,000/- was awarded towards the non-pecuniary heads of pain and suffering and loss of amenities of life. Further, compensation of Rs. 1,10,000/- was awarded towards prosthesis, and Rs. 50,000/- was awarded towards future medical expenses for replacement and maintenance of the prosthesis.

Submission of Counsel for Appellant

6. Counsel for appellant submits that the Tribunal has erred in assessing the functional disability of the injured at 70%. It is contended that though the permanent physical disability in relation to the right lower limb was assessed at 70% as per the Disability Certificate; the functional disability could not have been taken as equivalent to physical disability. According to counsel for appellant, having regard to the nature of avocation and overall facts and circumstances of the case, the functional disability ought to have been assessed at not more than 35%.

7. Counsel for appellant further submits tha

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2026 Supreme(Del) 708

Cases Referred (3)