The Supreme Court has held that continuing to work after a serious accident does not by itself rule out loss of earning capacity. Courts must consider whether the victim can compete and progress in the open job market.
The Supreme Court has held that a motor accident victim’s continued employment cannot, by itself, be used to reduce the assessment of functional disability.
The judgment came in a case involving Priyanka Das, who suffered multiple serious injuries in a road accident on April 10, 2011. She suffered permanent loss of vision, pelvic injuries and required a permanent colostomy stoma.
At the time of the accident, Das was 35 and working as a Deputy Group Manager with IBM Daksh, Concentrix Daksh Services India Pvt. Ltd.
The Motor Accident Claims Tribunal assessed her functional disability at 60%. It noted that she had continued working and that her annual CTC had increased from ₹16 lakh to ₹19 lakh after the accident.
The Punjab and Haryana High Court subsequently increased the assessment to 80%. The Supreme Court, however, held that continued employment could not be viewed in isolation.
A Medical Board constituted at Vardhman Mahavir Medical College and Safdarjung Hospital assessed her permanent physical impairment at 100%. The court also considered evidence that she could continue working only with specially created software, flexible working hours and significant workplace accommodations.
The court said functional disability must be assessed by considering the victim’s earning capacity in the open and competitive market, rather than simply looking at whether the person remains employed in a particular role.
It also noted that Das had lost normal career progression after the accident. Her employer’s records showed that she had missed opportunities for advancement to senior positions.
The Supreme Court therefore treated her functional disability as 100% for calculating loss of future earning capacity.
Using her monthly income of ₹84,057, 50% future prospects and a multiplier of 16, the court calculated loss of future income at ₹2.42 crore.
The total compensation was increased to ₹3,77,84,297, including medical expenses, attendant charges, future medical expenses, loss of income during treatment, pain and suffering and other heads of compensation.
The amount will carry 7.5% annual interest from the date of filing of the claim petition until realisation.
What does it mean for you?
For a person claiming compensation after a serious accident, having a job does not automatically mean there is no loss of earning capacity.
The court may also consider whether the employment depends on exceptional workplace support and whether the injury has affected future career growth and the ability to compete in the wider job market.
Source: Supreme Court of India, Reliance General Insurance Company Ltd. v. Priyanka Das & Others, Civil Appeal Nos. 12087-12088 of 2026 and 12089 of 2026, judgment dated 3-September-2026, 2026 INSC 950.
