On 09.04.2007, the claimant suffered severe injuries in a motor accident when his motorbike, carrying a pillion rider, was struck by a truck driven rashly and negligently.
Injury: As a result of the accident, the claimant underwent an amputation of one leg and a portion of the pelvic bone (hemipelvectomy).
The Tribunal conclusively found the accident proven, established the negligence of the truck driver, and noted that both vehicles had valid licences and the truck was covered by a valid insurance policy. These findings were not disputed by the insurance company and thus attained finality.
Law Involved
The Tribunal consulted the Employees’ Compensation Act, 1923, specifically its schedule, to assess the loss of earning capacity associated with an amputation at the hip.
The judgment primarily deals with the principles governing the assessment and award of compensation for personal injuries and economic losses sustained in motor accidents.
Reasoning
Disability Assessment: While the medical board certificate indicated 90% disability, the Supreme Court, in line with the High Court, ultimately upheld 50% functional disability for the purpose of computing loss of earning capacity, deeming it a reasonable assessment given the reduction in earning capacity.
Income Calculation: The Supreme Court rejected the lower courts’ ad-hoc income assessments. It meticulously reviewed the claimant’s income tax returns for the financial year 2007-2008, determining his actual annual net income to be Rs.1,91,000/- (after tax deductions).
Future Prospects: The Court overturned the High Court’s 40% enhancement for future prospects. It reasoned that such an enhancement was inappropriate when a 50% disability had already been comprehensively factored into the loss of earning capacity, and the claimant was still capable of continuing his business.
Multiplier: A multiplier of 18 was applied for calculating the loss of income, consistent with the High Court’s approach.
Medical Expenses: The Supreme Court reinstated the full claim of Rs.12,54,985/- for medical expenses, observing that the High Court’s reduction to Rs.8 lakhs lacked specific reasoning and that the claimant had provided supporting invoices.
Attendant Expenses & Artificial Limb: The Court restored the Tribunal’s awards of Rs.1 lakh for attendant expenses and Rs.4,70,805/- for the artificial limb, components that the High Court had not adequately accounted for.
Future Medical Expenses: Recognising the crucial and ongoing need for servicing, replacement, and other accessories for the prosthetic limb, the Supreme Court made a significant additional award of Rs.10,00,000/- for future medical expenses, which had not been granted by the lower courts.
Pain and Suffering & Loss of Amenities: The Court upheld the High Court’s awards of Rs.1 lakh for pain and suffering and Rs.2 lakhs for loss of amenities.
Holding
The Supreme Court allowed the appeals, leading to a substantial enhancement of the compensation awarded to the claimant.The final total compensation awarded is Rs. 48,44,790/-.
This amount is to be paid by the insurance company, along with 6% interest per annum from the date of the original application. The balance compensation, including interest, must be transferred online within three months from the date of the judgment.
Anoop Maheshwari Vs Oriental Insurance Company Ltd. & Ors.
Supreme Court: 2025 INSC 1076: (DoJ 04-09-2025)




