Motor Vehicles Act, 1988 — Compensation — Death of minor child — Assessment of notional income — Adoption of minimum wages — Multiplier — Future prospects — Deduction for personal expenses

Motor Vehicles Act, 1988 — Compensation — Death of minor child — Assessment of notional income — Adoption of minimum wages — Multiplier — Future prospects — Deduction for personal expenses

Where a 14-year-old boy died in a motor accident caused by rash and negligent driving of a truck, the notional income of the deceased child can be adopted as per the Minimum Wages Act, 1948. For a Class B city, monthly income fixed at Rs.5,400/-, with 40% addition towards future prospects. Multiplier of 15 applied in accordance with Reshma Kumari v. Madan Mohan. One-half deduction made towards personal expenses.

Motor Vehicles Act, 1988 — Compensation — Parents as claimants — Distinction between death and permanent disability of child

The claim of parents for compensation on death of a child stands on a different footing from a claim filed by a disabled child. Reliance on Baby Sakshi Greola distinguished, as that case involved a living child suffering permanent disability.

Motor Vehicles Act, 1988 — Conventional heads — Loss of estate — Funeral expenses — Filial consortium — Pain and suffering

Parents are entitled to compensation under conventional heads, including loss of estate, funeral expenses, loss of filial consortium, and compensation for pain and suffering where the child survived for a short duration after the accident.

Interest

Enhanced compensation directed to be paid with interest at 7.5% per annum.

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ANALYSIS OF FACTS

1. The deceased was a 14-year-old school-going boy, proceeding to school along with two classmates.

2. A truck driven rashly and negligently caused the accident.

3. Two schoolmates died on the spot; the deceased child succumbed to injuries one day later in hospital.

4. The parents filed a claim before the Motor Accident Claims Tribunal.

5. The Tribunal awarded Rs.1,29,500/- with 6% interest.

6. On appeal, the High Court enhanced the compensation to Rs.4,70,000/- with 6% interest.

7. Dissatisfied, the parents approached the Supreme Court seeking further enhancement.

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ANALYSIS OF LAW AND REASONING

1. Notional Income

The Court accepted the submission that minimum wages under the Minimum Wages Act, 1948 could be adopted for assessing notional income. Both counsel agreed that for a Class B city, the minimum wage was Rs.5,400/- per month.

2. Future Prospects

A 40% increase towards future prospects was allowed, consistent with settled principles governing assessment of income even in cases involving children.

3. Multiplier

The Court rejected the contention for adopting a multiplier of 18.
It held that multiplier 15, as laid down in Reshma Kumari v. Madan Mohan, was applicable.

The reliance placed on Baby Sakshi Greola was expressly distinguished, since that case involved a disabled child, whereas the present case involved death of a child, making the factual and legal context different.

4. Personal Expenses

A one-half deduction towards personal expenses was applied.

5. Conventional Heads

The Court retained and granted compensation under the following heads:

• Medical expenses

• Loss of estate

• Funeral expenses

• Loss of filial consortium to both parents

• Compensation for pain and suffering, considering the child survived for one day after the accident

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OPINION OF THE COURT (Ratio and Final Determination)

The Supreme Court held that the compensation awarded by the Tribunal and the High Court was inadequate. Applying minimum wages, future prospects, multiplier of 15, and conventional heads, the Court recalculated compensation as follows:

Computation Approved by the Court

Sl. No.	Head of Claim	Amount
1	Loss of dependency (Rs.5400 × 12 × 140% × 15 × ½)	Rs.6,80,400/-
2	Loss of estate	Rs.15,000/-
3	Loss of consortium (Rs.40,000/- each)	Rs.80,000/-
4	Medical expenses	Rs.50,000/-
5	Funeral expenses	Rs.15,000/-
6	Pain and suffering	Rs.25,000/-
Total		Rs.8,65,400/-

The respondents were directed to pay the enhanced amount, after deducting the sum already paid, within two months, with interest at 7.5% per annum.

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FINAL ORDER

• Appeal allowed.

• Compensation enhanced to Rs.8,65,400/- with 7.5% interest.

• Pending applications disposed of.