The Gujarat High Court has substantially enhanced the compensation awarded to a motor accident victim, holding that 55% permanent neurological disability may amount to 100% functional disability where the injured person is rendered incapable of pursuing his occupation. The Court enhanced the compensation by ₹28.74 lakh, taking the total compensation payable to ₹36.79 lakh.
Justice Mool Chand Tyagi was hearing an appeal filed by appellant, who suffered severe head and neurological injuries in a road accident in July 2020. The Motor Accident Claims Tribunal (MACT), Narmada, had awarded ₹8.04 lakh in compensation after assessing his functional disability at 55%. Challenging the quantum, the claimant contended that he had become completely incapacitated and was entitled to substantially higher compensation.
The High Court noted that although the medical evidence assessed the claimant’s permanent neurological disability at 55%, the evidence also established that he had lost effective control over his bodily functions, suffered poor bladder and bowel control, and had become bedridden, rendering him incapable of independently carrying out day-to-day activities. As the claimant was engaged in centering work, the Court held that he could no longer continue his avocation and, therefore, had suffered 100% functional disability. Relying on the Supreme Court’s decision in Raj Kumar v. Ajay Kumar, (2011) 1 SCC 343, the Court reiterated that functional disability and medical disability are distinct concepts and that compensation must be assessed based on the impact of the disability on the claimant’s earning capacity.
The Court also found that the Tribunal had erred in assessing the claimant’s monthly income at ₹8,000 despite the absence of documentary proof. Observing that minimum wages should be adopted in such circumstances, it reassessed the claimant’s monthly income at ₹9,000, being the minimum wage payable to a skilled worker at the relevant time, and further added 25% towards future prospects in terms of the Supreme Court’s decisions in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680 and Sidram v. United India Insurance Co. Ltd., 2022 INSC 1202.
The High Court further held that the claimant required continuous assistance for his daily activities and awarded ₹14.04 lakh towards attendant charges, observing that the Tribunal had failed to grant any compensation under this head despite overwhelming evidence showing lifelong dependence on caregivers. The Court also enhanced compensation under the head of pain, shock and suffering from ₹50,000 to ₹5 lakh, noting that the claimant had remained in the ICU, undergone prolonged treatment and had been deprived of leading a normal life.
Accordingly, the Court recalculated the compensation and awarded a total of ₹36.79 lakh, resulting in an additional compensation of ₹28.74 lakh over and above the amount granted by the Tribunal. The Insurance Company was directed to deposit the enhanced compensation along with 9% interest per annum from the date of filing of the claim petition within six weeks, following which the Tribunal shall disburse the amount to the claimant after due verification.
