Supreme Court: Priyanka Das' Functional Disability at 100% Despite Job Retention, Awards Rs 3.77 Crore

Key Legal Principle: The assessment of functional disability in motor accident compensation cases must focus on a victim's ability to earn in the open, competitive labour market, rather than on the fact that the person continues to retain a job in a highly accommodated workplace.

The Supreme Court of India delivered a significant ruling on September 3, 2026, in a set of appeals arising from a tragic 2011 road accident that left Priyanka Das completely blind and with permanent physical impairments. A bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria enhanced her compensation to Rs 3.77 crore, firmly rejecting the insurer's argument that her continued employment negated a high degree of functional disability.

A Life Altered in Seconds

On April 10, 2011, Priyanka Das was riding pillion on a motorcycle driven by Sushant Prabhakaran near Brijghat Bridge. A heavy goods vehicle struck them, killing Prabhakaran instantly and leaving Das with catastrophic injuries. She suffered a pelvic fracture, severe degloving injuries, and, most critically, traumatic bilateral cortical blindness. Despite numerous surgeries, her large intestine could not be restored, necessitating a permanent colostomy stoma for life.

At the time, Das was a 35-year-old Deputy Group Manager at IBM Daksh in Gurgaon, earning a salary of Rs 84,057 per month. She filed a claim petition before the Motor Accident Claims Tribunal (MACT), Gurugram, seeking Rs 12 crore in compensation.

The Battle Over 'Functional Disability'

The MACT assessed her functional disability at 60% and awarded Rs 1.35 crore. The tribunal noted that while Das had 100% physical disability (blindness), she continued to work with the help of specialized assistive software, and her cost-to-company had actually increased post-accident. On appeal, the Punjab and Haryana High Court increased the functional disability to 80% and applied 50% towards future prospects, raising the compensation to Rs 2.94 crore.

Both the insurer (Reliance General Insurance) and Das appealed to the Supreme Court. The insurer argued that since Das remained employed and even got salary increments, her functional disability was minimal. Das countered that her 100% permanent physical impairment—confirmed by AIIMS and a court-ordered Medical Board at Safdarjung Hospital—meant she had no real earning capacity in the open market.

"Not Retention, but Earning Capacity in the Open Market"

The Supreme Court rejected the insurer's contention. It observed that the calculation of functional disability "depends on assessing the victim's earning capacity in the open, competitive market , rather than on retention in a specific, highly accommodated role." The court noted that Das could perform her duties only through specially created software, flexible working hours, and "extreme accommodations provided by her employer as an act of corporate compassion ."

Crucially, the court relied on a career-growth letter from Das's employer confirming that she had lost normal promotional progression after the accident, missing opportunities for advancement to General Manager, Director, or Vice President. Based on the Medical Board's report certifying 100% permanent physical impairment of the whole body, the court held that her capacity to independently secure, sustain, or advance employment in the open labour market had been entirely extinguished.

Key Observations from the Judgment

"The calculation of functional disability depends on assessing the victim's earning capacity in the open, competitive market , rather than on retention in a specific, highly accommodated role."

"The compensation calculation shifts from the High Court’s 80% assessment to a 100% functional disability because the Claimant’s capacity to independently secure, sustain, or advance employment in the open labour market has been entirely extinguished."

"Having invited the Medical Board’s opinion, the insurer cannot be heard to argue that the compensation is payable at a lesser percentage than assessed by the duly constituted Medical Board."

Enhanced Compensation: A Detailed Breakdown

The court recalculated the compensation on the basis of 100% functional disability, applying 50% towards future prospects and a multiplier of 16. The total loss of future earning capacity was fixed at Rs 2,42,08,416. The court also enhanced attendant charges, noting the need for round-the-clock care, and awarded Rs 20 lakh for loss of marriage prospects, clarifying that this was a "peculiar" award not to be treated as a precedent.

The final compensation of Rs 3,77,84,297 includes:

  • Loss of future earning capacity: Rs 2,42,08,416
  • Medical bills: Rs 35,48,798
  • Attendant charges: Rs 28,80,000 (for three attendants)
  • Loss of income during treatment (19 months): Rs 15,97,083
  • Future medical expenses: Rs 15,00,000
  • Pain, suffering, and mental agony: Rs 15,00,000
  • Loss of marriage prospects: Rs 20,00,000
  • Special diet, loss of amenities, transportation: Rs 5,50,000

Interest at 7.5% per annum was awarded from the date of the claim petition.

The Connected Death Claim: Multiplier and Marital Status

In a separate but related appeal concerning the death of Sushant Prabhakaran, the court dismissed the insurer's challenge to the multiplier . It reaffirmed the settled position that for bachelors, the multiplier must be based on the deceased's age (33 years, multiplier of 16), not the dependents' age. The court also declined to interfere with the concurrent findings that Priyanka Das was not the legally wedded wife of the deceased, noting that " what is due is not denied; what is undeserving is not awarded ."

Implications of the Ruling

This judgment clarifies that the assessment of functional disability in motor accident cases cannot be reduced merely because the claimant continues to work in an accommodated environment. The focus must be on the claimant's earning capacity in the open market. The ruling also emphasizes that insurers cannot challenge medical board reports they themselves sought. The decision is expected to guide tribunals and high courts in evaluating compensation for grievously injured claimants who retain employment through special accommodations.