In Brief
A 30-year-old Chartered Accountant suffered permanent disabilities to both legs in a motor accident. The Motor Accident Claims Tribunal awarded Rs. 5,35,227 in compensation, while the High Court enhanced it to Rs. 6,35,000 without breaking it into component heads. The Supreme Court held that compensation for permanent disability should be calculated using the multiplier method (not a lump sum), by assessing how the disability actually affects earning capacity in the claimant's specific profession. Since a Chartered Accountant requires mobility for client visits and regulatory appearances, the 70% disability significantly reduced earning capacity despite desk work. Applying multiplier 17 to 70% of annual income, the Court enhanced permanent disability compensation to Rs. 14,28,000, bringing total compensation to Rs. 19,93,227."
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