Supreme Court Clarifies Functional Disability Assessment and Future Prospects Calculation in Motor Accident Claims

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Case: M PARAMESH v. VRL LOGISTICS LTD
Court: Supreme Court of India
Date: 23-06-2026
Law: Motor Vehicles Act, Law of Tort.

Full Judgment → MCQ Test →

Highlights of the Judgment:

• Analysis of the distinction between physical disability and functional disability in motor accident claims.
• Application of the landmark precedent in Raj Kumar v. Ajay Kumar regarding loss of earning capacity.
• Critique of the mechanical application of physical disability percentages to determine economic loss.
• Assessment of functional disability at 100% for manual laborers suffering limb amputations.
• Correction of mathematical errors in computing future prospects on enhanced income.
• Guidelines on enhancing compensation for periodic replacement of artificial limbs.