Motor Vehicle - Minors : National income per Minimum Wages Act, a 40% for future prospects, and a multiplier of 15

Supreme Court Enhances Compensation for Fatal Accident Involving Minor Apex Court directs substantial increase in compensation for parents of deceased minor, setting new benchmark for claims under Motor Vehicles Act.

In a landmark decision, the Supreme Court of India has significantly enhanced the compensation payable to the parents of a 14-year-old boy who tragically lost his life in a road accident. The judgment, passed by the bench comprising Justices Ahsanuddin Amanullah and K. Vinod Chandran, revises the compensation amount to Rs. 8,65,400 from the previously awarded Rs. 4,70,000 by the High Court.

The accident, which occurred when a truck was driven rashly, claimed the lives of three school-going children. The Motor Accident Claims Tribunal initially awarded a compensation of Rs. 1,29,500, which was later increased by the High Court. However, the appellants, represented by Mr. John Mathew, argued for a further enhancement, citing inadequate consideration of the deceased's potential future earnings and reliance on the precedent set by the case of Baby Sakshi Greola.

The Supreme Court, while adjudicating on the appeal, applied the principles from the Minimum Wages Act, 1948, to ascertain the notional income of the deceased, with a 40% increase for future prospects. The court upheld the application of a multiplier of 15, as established in the case of Reshma Kumari v. Madan Mohan. Additionally, the court provided for deductions for personal expenses and included compensations for loss of estate, loss of filial consortium, medical and funeral expenses, and pain and suffering, thereby arriving at the revised total compensation.

The court has directed the insurance company to pay the enhanced amount within two months, with an interest rate of 7.5% applied to the compensation. This judgment not only provides justice to the grieving family but also sets a significant precedent for similar cases involving minors under the Motor Vehicles Act, 1988.

Bottom Line:

In cases of fatal accidents involving minors, the notional income can be determined as per the Minimum Wages Act, 1948, with a 40% increase for future prospects, and a multiplier of 15 should be applied. Deductions for personal expenses, as well as additional compensations for loss of estate, loss of filial consortium, medical expenses, funeral expenses, and pain and suffering, are to be included while calculating the total compensation.

Statutory provision(s): Motor Vehicles Act, 1988, Minimum Wages Act, 1948

Devendra Kumar Tripathi v. Oriental Insurance Company Ltd., (SC) : Law Finder Doc Id # 2822116