The Supreme Court held that disability in motor accident compensation must be functional, not merely medical, awarding Rs 48 lakh to the victim for loss of earning capacity.
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NEW DELHI: The Supreme Court of India has awarded an enhanced compensation of Rs 48,44,790 to a man who suffered the amputation of one leg along with a portion of the pelvic bone in a motor accident. The Court clarified that while granting compensation under the Motor Vehicles Act, the assessment of disability must focus on “functional disability”—that is, the impact on earning capacity—rather than relying strictly on the percentage of medical disability.
Background of the Case
The case arose from a tragic accident in April 2007, when a truck, driven rashly and negligently, collided with the motorbike of the claimant, Anoop Maheshwari. The accident resulted in a hemipelvectomy (amputation of one leg and part of the pelvic bone).
The Tribunal initially assessed his disability at 45%, rejecting his claim of 90% supported by a medical board’s certificate. It awarded compensation of Rs 13.23 lakh, including limited medical and attendant expenses.
The High Court later enhanced his compensation to Rs 23.09 lakh, fixing the disability at 50% functional disability and revising his monthly income to Rs 8,000. Dissatisfied, the claimant approached the Supreme Court seeking further enhancement.
Observations by the Supreme Court
A Division Bench of Justice K. Vinod Chandran and Justice N. V. Anjaria held that:
- Functional disability vs. medical disability: The Court emphasized that disability must be assessed on its impact on earning capacity, not merely on medical percentages. Since the claimant was running a business and fitted with a prosthetic leg, a 50% functional disability assessment was deemed reasonable.
- Income assessment: The Court accepted the claimant’s income tax returns for 2007–08, fixing his annual income at Rs 1,91,000 after tax deductions, rejecting the Tribunal’s speculative rejection.
- Medical expenses: The claimant had produced invoices for Rs 12.54 lakh, which the Tribunal had reduced and the High Court partially allowed. The Supreme Court directed full reimbursement.
- Future expenses: Recognizing the lifelong need for prosthetic limb replacements and medical care, the Court granted an additional ₹10 lakh for future expenses.
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Breakup of Compensation Awarded:
The Supreme Court enhanced the compensation as follows:
- Loss of income (50% disability, multiplier 18): Rs 17,19,000
- Medical expenses: Rs 12,54,985
- Pain and suffering: Rs 1,00,000
- Loss of amenities: Rs 2,00,000
- Attendant expenses: Rs 1,00,000
- Artificial limb expenses (as awarded by Tribunal): Rs 4,70,805
- Future medical and prosthetic expenses: Rs 10,00,000
Total Rs 48,44,790 with 6% interest per annum from the date of application.
Appearance:
Appellant: Senior Advocate S.P.Chaly, Advocates Roy Abraham, Reena Roy, Adithya Koshy Roy, Yaduinder Lal, Rajni Ohri Lal, AOR Himinder Lal
Respondent: AOR T. Mahipal, Advocate Rohit Kumar Sinha
Case Title:
Anoop Maheshwari v. Oriental Insurance Company Ltd.
Civil Appeal Nos. 12098-12099 of 2024
Read Judgment:
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