In Brief
A laborer aged 25 suffered amputation of his right hand below the elbow when a tractor was negligently reversed into a threshing machine he was operating. He sought Rs. 20 lakhs compensation under the Motor Vehicle Act, 1988. The Motor Accident Claims Tribunal awarded Rs. 3.76 lakhs (20% disability), the High Court enhanced it to Rs. 6.61 lakhs (40% disability). The Supreme Court allowed the appeal and increased compensation to Rs. 20.55 lakhs, holding that: (1) minimum wage (Rs. 6,850 per month) should replace the notional income used below; and (2) functional disability should be assessed at 80%, reflecting that amputation rendered him unable to work as a laborer. The judgment reaffirms that compensation must realistically account for permanent loss of earning capacity in the injured person's actual occupation.
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