A decade after he suffered grievous injuries in a road accident that led to partial blindness and cognitive impairment, a private firm manager has been awarded a compensation of over ₹1 crore by the Supreme Court.
The victim used to earn ₹25,000 a month at the time of the accident.
The court held that the injuries caused permanent disability and severely affected his future earning capacity.
A bench comprising Justices Prashant Kumar Mishra and Sandeep Mehta observed that the disability certificate issued by the medical board clearly established that the claimant had suffered a head injury (treated conservatively), facial injuries, and a left femur fracture that required surgery. These injuries later resulted in partial blindness, cognitive impairment, and reduced mobility and stability in the left knee.
The court further noted that a neuropsychological assessment revealed severe deficits in verbal and visual memory, impaired frontal lobe function, and an IQ score of 65, placing the claimant in the category of mild intellectual disability. Taken together, these findings showed that the injuries were not merely orthopaedic but had significant neurological consequences affecting both functional and cognitive abilities.
The apex court emphasised that in such cases, the key consideration is the actual impact of the disability on the injured person’s earning capacity, taking into account factors such as profession, age, and nature of work.
It also clarified that the Motor Accidents Claims Tribunal (MACT) must conduct a structured evaluation to determine what activities the claimant can perform after the injury, the nature of their pre-accident occupation, and whether the disability results in total incapacity or only a reduction in earning ability. The bench noted that the high court had failed to provide cogent reasons for reducing the compensation awarded by the tribunal.
Accordingly, the court held that the claimant’s functional disability should be “assessed at 100 per cent for computing loss of earning capacity”. It recalculated the compensation at ₹97,73,011, along with interest at 7.5 per cent per annum from the date of filing of the claim petition until realisation.
The apex court passed the directions while allowing an appeal filed by the victim, R. Halle, challenging the awards passed by the MACT, Coimbatore, which had in 2020 awarded him ₹65,53,811 along with 7.5 per cent interest per annum and directed Reliance General Insurance Company Limited to pay the amount.
Both the insurer and the claimant had filed cross-appeals before Madras High Court, which in 2022 reduced the compensation to ₹35,61,000.