Fair Compensation Beyond Disability Numbers: Tribunal's Verdict

A motor accident claims tribunal awarded Rs 27.07 lakh to Prahalad Rai for injuries sustained in a 2019 crash. Despite a 63% disability, assessments of earning capacity differed, emphasizing the need for individualized evaluations. The verdict emphasizes non-mechanical application of medically determined disability on earning potential.


Devdiscourse News Desk | New Delhi | Updated: 13-06-2025 19:23 IST | Created: 13-06-2025 19:23 IST
Fair Compensation Beyond Disability Numbers: Tribunal's Verdict
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The motor accident claims tribunal recently made headlines by awarding Rs 27.07 lakh to an individual injured in a 2019 road accident, stressing that permanent disability ratings cannot mechanically dictate loss of earning capacity. The ruling comes amidst growing debates over fair compensation methodologies.

Presiding Officer Shelly Arora reviewed Prahalad Rai's case, who was injured when a truck hit his two-wheeler. Despite Rai's 63 per cent permanent disability, the tribunal determined his functional disability at 50 per cent, highlighting the nuanced nature of compensating income loss.

As functional impact varies per case, the tribunal emphasized evaluating factors like job nature and psychological effects. With compensation established, the insurer, United India Insurance Company Ltd, has been tasked to fulfill the payment obligations with applicable interest.

(With inputs from agencies.)

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