Supreme Court Clarifies Assessment of Functional Disability in Motor Accident Cases
A recent Supreme Court decision has clarified that assessment of functional disability in motor accident compensation cases should focus on an individual's ability to earn in a competitive labor market, rather than their continued employment in a specific role.
The court made this ruling while considering the case of Priyanka Das, who suffered severe injuries in a 2011 road accident and was left with complete blindness, serious pelvic injuries, and a permanent colostomy. She was employed as a Deputy Group Manager at IBM Daksh, but despite her continued employment, she required extensive accommodations from her employer to perform her duties.
The court held that the calculation of functional disability should be based on the individual's earning capacity in the competitive market, rather than their retention in a specific role. The court also noted that the Medical Board's opinion was the guiding factor for determining compensation, and that the insurer could not argue for a lower percentage once the report was against them.
The court ultimately awarded Priyanka Das a total of Rs 3,77,84,297 as compensation for her injuries, with an interest rate of 7.5% per annum from the date of filing of the claim petition.