Supreme Court – Accident Compensation – Functional Disability Vs. Physical Disability
The Tribunal granted accident compensation of Rs.65,53,811/- with liberty to the insurer to recover the said amount from the driver -cum- owner of the offending vehicle. This was based on the permanent physical disability at 63% assessed by the Medical Board. However, The High Court reduced the said amount to Rs.35,61,000/- on the finding that the functional disability is 30%.
The Supreme Court re-determined the compensation and enhanced the same to Rs.97,73,011/-.
In view of the principles laid down by this Court in Raj Kumar (supra), as consistently affirmed thereafter, the assessment of functional disability must be grounded in a realistic appraisal of the impact of the injury on the claimant’s capacity to earn. The inquiry is not confined to the numerical percentage of physical impairment certified by the Medical Board, but extends to evaluating whether the claimant, in light of his educational background, skill set and nature of employment, is capable of meaningfully pursue his avocation.
Press Release dated February 04, 2026 | Supreme Court of India | India
Judgment dated 18.3.2026 of the Supreme Court in Diary No.37186 of 2023 of R. Halle Vs. Reliance General Insurance Company Ltd
