Supreme Court Enhances Compensation for IBM Employee with Permanent Physical Impairment
The Supreme Court of India has ruled that functional disability in motor accident compensation claims must be assessed based on a person's earning capacity in an open and competitive market, rather than their ability to work in a specific accommodated role.
The court's decision came in the case of an IBM Group Manager who suffered 100% permanent physical impairment due to a post-traumatic head injury with cortical blindness, pelvic fracture, and permanent colostomy. The claimant was assessed as having 60% functional disability by the Motor Accident Claims Tribunal, but the High Court enhanced this to 80%. The Supreme Court further increased the assessment to 100% functional disability.
The court relied on evidence from a Career Growth Letter from the claimant's employer, which showed that she had lost out on normal career growth and promotional progression due to her accident. The court also considered the Medical Board Report from Vardhman Mahavir Medical College & Safdarjung Hospital, which certified 100% permanent physical impairment of the whole body.
The Supreme Court awarded a total compensation of Rs. 3,77,84,297 with 7.5% interest to the claimant, including amounts for medical bills reimbursement, attendant charges, loss of income during treatment, future medical expenses, pain, suffering and mental agony, loss of marriage prospects, special diet, loss of amenities and disfiguration, and transportation charges.