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

Case
M PARAMESH v. VRL LOGISTICS LTD (Supreme Court of India, 23-06-2026)
Law
Motor Vehicles Act, Law of Torts.

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.