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Motor Accident Compensation: Claimant Entitled To Future Loss Of Income Proportionate To Extent Of Disability Though There Is No Total Loss Of Income

[27 January 2022] The Bombay High Court observed that while determining the compensation that the applicant would be entitled to on account of loss of future earnings, even if the applicant has not suffered total loss of income due to permanent disability. It was held that the claimant would be entitled to proportional of notional income corresponding to the extent of his disability. Accordingly, the Court enhanced the compensation awarded to the appellant-claimant from Rs.50,000 to Rs.2,70,000. While considering whether the Tribunal was justified in awarding a lump sum compensation of Rs.50,000, the judgement authored by Justice N.J Jamadar observes that under Section 166 of the MV Act, 1988 the courts are statutorily enjoined to award a “just” compensation: A compensation can be said to be “just” if it has the element of restoring the claimant to the position prior to the accident, albeit to the extent possible, in full measure. The tribunals and the Courts are expected to be alive to the fact that a person is not only to be compensated for the physical injury but also for the loss, which such injury entails, namely, inability to earn as much as the injured used to earn or could have earned, inability to lead the life to the fullest and not in the least the inability to enjoy the usual amenities and joys which the life offers.”

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