Carpenter’s Leg Amputation Can Be Treated as 100% Functional Disability for Motor Accident Compensation: Supreme Court
Case Name: Shankar Dutt v. United India Insurance Co. Ltd. and Others
Citation: 2026 INSC 656
Date of Judgment/Order: 24 June 2026
Bench: Ujjal Bhuyan, J. and N.V. Anjaria, J.
Held: The Supreme Court held that in motor accident injury claims, 100% functional disability carpenter compensation may be awarded where the medical disability is assessed at 70%, but the actual effect of the injury completely disables the injured from pursuing his skilled occupation. The Court held that functional disability must be assessed with reference to the injured person’s avocation, earning activity, age, socio-economic circumstances and day-to-day impact of the injury, and not merely by mechanically applying the percentage mentioned in the medical certificate. Since carpentry is a skilled manual occupation requiring sitting, physical balance, mobility and bodily support, amputation of the claimant’s right leg below the knee rendered him functionally incapable of continuing his work as a carpenter.
Summary: The appellant, a 38-year-old carpenter, suffered grievous injuries in a motor accident on 09.11.2004 when a jeep came on the wrong side and hit his motorcycle. His right leg was amputated above the knee, and he remained hospitalised for about 43 days. The Motor Accident Claims Tribunal awarded ₹4,77,823 with 4% interest, and the Uttarakhand High Court enhanced the compensation to ₹11,51,423 with 6% interest, while assessing monthly income at ₹5,000, applying multiplier 15 and treating disability at 70%. Before the Supreme Court, the appellant sought further enhancement, contending that he was a skilled carpenter, his notional income had been undervalued, no proper amount had been awarded for artificial limb, attendant charges, transportation, loss of income during treatment and functional disability. The Supreme Court held that carpentry is skilled work and assessed the appellant’s monthly income at ₹9,000. It further held that although the medical disability was 70%, the actual functional disability was 100% because the appellant could no longer sit, squat, stand without support or perform carpentry work, which was his only source of livelihood.
Decision: The Supreme Court allowed the appeal and enhanced the total compensation from ₹11,51,423 to ₹35,95,923. The Court assessed loss of future earning capacity on the basis of ₹9,000 monthly income, 40% future prospects, multiplier 15 and 100% functional disability, and also awarded ₹10,00,000 towards future medical expenses including prosthetic leg, while maintaining ₹1,00,000 for pain, shock and suffering and granting other just heads including loss of amenities and attendant-related compensation. United India Insurance Co. Ltd. was directed to deposit the balance additional amount of ₹24,44,500, being the difference between ₹35,95,923 and ₹11,51,423, with interest at 6% per annum before the Claims Tribunal within six weeks. The Tribunal was directed to disburse the amount to the appellant after necessary verification by directly transferring it to his bank account.