Wednesday, June 24, 2026

Motor Vehicles Act, 1988 and Compensation : Supreme Court Enhances the Compensation Amount to Victim of Road Accident

Motor Vehicles Act, 1988 and Compensation : Supreme Court Enhances the Compensation Amount to Victim of Road Accident

It has been held that "though the physical disability may be assessed at a particular percentage, the functional disability affecting earning capacity may, depending upon the nature of avocation carried on by the injured, be assessed at a higher percentage including 100%. The assessment of compensation in cases of permanent disability cannot be undertaken by mechanically applying the percentage of physical disability as the percentage of economic loss."

Refer M Paramesh v. VRL Logistics Ltd [2026] GCtR 386 (SC).

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