The Supreme Court awarded an enhanced compensation of over Rs 48 lakh to a man who suffered amputation of one leg and a portion of the pelvic bone due to a motor accident. The Apex Court held that the disability to be assessed for the purpose of awarding compensation is the functional disability, which reduces the earning capacity of the claimant and not strictly the medical disability.

The appeals before the Apex Court were filed by the claimant/injured in a motor accident, seeking enhancement of the award.

On the aspect of disability suffered by the claimant, the Division Bench of Justice K. Vinod Chandran and Justice N. V. Anjaria explained, “Insofar as the disability is concerned, we have no doubt that the medical board’s certificate can be accepted, even without a witness being examined. The disability certificate also indicates that the amputation suffered by the petitioner is of hemipelvectomy; which is the amputation of one leg and a portion of the pelvic bone on the same side. The disability to be assessed for the purpose of awarding compensation arising from a motor accident is the functional disability which reduces the earning capacity of the claimant and not strictly the medical disability.”

Senior Advocate S.P.Chaly represented the Appellant while AOR T. Mahipal represented the Respondent.

Factual Background

The accident took place in the year 2007 when the motorbike, driven by the claimant with a pillion rider, was hit by a truck, which was driven rashly and negligently. The Tribunal found the accident to be proven and the negligence to be of the truck driver. The drivers of both vehicles were having valid licences, and a valid insurance policy covered the truck. The Tribunal found the disability suffered by the claimant to be 45%, as opposed to the claim of 90%, which was sought to be established through the production of a disability certificate issued by the Medical Board. Together with Rs 1 lakh for attendant expenses, the total award of the Tribunal came to Rs 13,23,831. The High Court, deciding the appeal filed by the insurance company and the claimant, having rejected the claim of composite negligence made a nominal enhancement of the disability as 50%. The High Court in the quantum appeal enhanced the monthly income to Rs 8,000. It was in such circumstances that the appeal was filed before the Apex Court.

Reasoning

The Bench found that the claimant was running a business and he had already been fitted with a prosthetic limb to ensure his mobility. Thus, the Bench noted that the order of the High Court holding the disability to be 50% for computing loss of income as relatable to the loss of earning capacity was correct and within the parameters to be considered for assessing the loss of income arising from a motor accident which led to disability of the victim. “The disability assessed at 50% is the functional disability and it is quite reasonable”, it said.

On the issue of income, the Bench agreed with the view of the High Court that the Tribunal had entered into mere surmises and conjectures in declining adoption of the income as per the income tax returns. The Bench accepted the income tax returns for the financial year 2007-2008, in which the total gross income was seen as Rs 1,96,000 out of which the tax of Rs 4,641 had to be deducted. The income, had to be assessed at Rs 1,91,000. In assessing the loss of income, the multiplier of 18 was held to be perfectly in order, as well as the disability determined at 50%.

It was further noticed that though the claimant had suffered a disability, which had been determined to be 50%, there was no difficulty in continuing with the business, and the claimant had also been fitted with a prosthetic leg, which ensured his mobility and continuance of the business. The Bench further mentioned, “The High Court also merely enhanced the claim for medical expenses to Rs.8 lakhs without any reasoning. In the above facts and circumstances, we are of the opinion that the entire medical expenses claimed for which invoices were produced, totalling Rs.12,54,985/- has to be paid to the claimant.”

The Bench concluded that an amount of Rs 10 lakh would suffice to account for the future expenses for continued use of the prosthetic limb and the medical expenses arising. Thus, awarding an enhanced compensation of Rs 48,44,790, the Bench allowed the appeal and asked the insurance company to pay the said amount.

Cause Title: Anoop Maheshwari v. Oriental Insurance Company Ltd. (Neutral Citation: 2025 INSC 1076)

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

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Justice Vinod ChandranJustice NV Anjaria

Tulip Kanth

Assistant Editor

Tulip Kanth is an Assistant Editor at Verdictum having over 5 years of experience in the field of legal journalism and editing. She extensively covers judgments of the Supreme Court, High Courts as well as Tribunals. She has previously worked with a legal publishing website where she oversaw the work of other editors and has also created updates on notifications of different Government Ministries. She holds an English Honours Degree from SGTB Khalsa College, Delhi University and has completed her LLB course with specialisation in Corporate Law from Amity University.