Supreme Court Enhances Compensation for Minor with 75% Permanent Disability in Motor Accident Case. Notional Income Based on Skilled Workman Minimum Wages, Future Prospects Added, and Attendant Charges Awarded.

In Favour of Accused
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Case Note & Summary

The appellant, a minor girl aged less than 12 years, suffered 75% permanent disability (severe hemiparesis in left upper and lower limbs) in a road accident on 13.04.2013. Her father filed a claim petition before the Motor Accident Claims Tribunal, Guwahati, which awarded ₹5,59,771/- with interest at 7.5% per annum. On appeal, the Gauhati High Court enhanced the compensation to ₹18,97,371/- by adopting minimum wages for unskilled labour (₹169 per day) and applying a multiplier of 15, but did not add future prospects. The appellant further appealed to the Supreme Court claiming higher compensation. The Supreme Court allowed the appeal, holding that the notional income should be based on minimum wages for skilled workman (₹175 per day as per Assam Government notification), resulting in monthly income of ₹5,250/-. Applying the multiplier of 15, loss of earnings was computed at ₹9,45,000/-. Additionally, 40% future prospects were added (₹3,78,000/-). Attendant charges for lifetime were awarded at ₹9,00,000/- (₹5,000 per month x 12 x 15). Future medical treatment was enhanced to ₹5,00,000/-. The amounts for pain, suffering and loss of amenities (₹3,00,000/-), loss of marriage prospects (₹3,00,000/-), and medical expenses (₹84,771/-) were upheld. Total compensation was fixed at ₹34,07,771/- with interest at 7.5% per annum from the date of claim petition till deposit. The amount was directed to be kept in fixed deposits with monthly interest disbursed to the appellant or her father.

Headnote

A) Motor Accident Compensation - Child Victim - Notional Income - Minimum Wages - For a school-going child victim, notional income should be based on minimum wages for a skilled workman, not unskilled labour, as per the notification of the State Government. (Paras 8-9)

B) Motor Accident Compensation - Loss of Future Prospects - 40% Addition - In cases of permanent disability to a child, 40% of the notional monthly income must be added towards future prospects, following the precedent in Kajal v. Jagdish Chand. (Para 8)

C) Motor Accident Compensation - Attendant Charges - Multiplier Method - Attendant charges for a permanently disabled child should be computed using the multiplier method, with monthly expense of ₹5,000 per attendant, as held in Kajal v. Jagdish Chand. (Para 8)

D) Motor Accident Compensation - Future Medical Treatment - Enhancement - Given the nature of permanent disability (75% hemiparesis), future medical expenses are enhanced to ₹5,00,000 from ₹3,00,000 awarded by the High Court. (Para 8)

E) Motor Accident Compensation - Pain, Suffering, Loss of Amenities and Marriage Prospects - The amounts of ₹3,00,000 each for pain, suffering and loss of amenities and for loss of marriage prospects are just and require no interference. (Para 8)

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Issue of Consideration

Whether the compensation awarded by the High Court to a minor child with 75% permanent disability was just and proper, and what heads and amounts should be included.

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Final Decision

The Supreme Court allowed the appeal and enhanced the compensation to ₹34,07,771/- with interest at 7.5% per annum from the date of claim petition till deposit. The amount was directed to be kept in fixed deposits with monthly interest disbursed to the appellant or her father.

Law Points

  • Compensation for child victims
  • notional income based on minimum wages
  • loss of future prospects
  • attendant charges
  • multiplier method
  • permanent disability assessment
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Case Details

2024 LawText (SC) (11) 295

Civil Appeal No. ………………. of 2024 (@ Special Leave Petition (C) No. 6176 of 2023)

2024-11-05

Sanjiv Khanna, Sanjay Kumar

2024 INSC 837

Miss Rushi @ Ruchi Thapa, through her father, Sri Dhan Bahadur Thapa

M/s. Oriental Insurance Co. Ltd. and Another

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Nature of Litigation

Appeal against the judgment of the Gauhati High Court enhancing compensation for a minor child with permanent disability in a motor accident claim.

Remedy Sought

The appellant sought enhancement of compensation from ₹18,97,371/- to ₹71,80,000/- (later revised to ₹48,68,000/-) under various heads.

Filing Reason

The appellant was dissatisfied with the compensation awarded by the High Court, claiming it was still on the lower side.

Previous Decisions

The Motor Accident Claims Tribunal awarded ₹5,59,771/- on 23.02.2018. The Gauhati High Court enhanced it to ₹18,97,371/- on 20.02.2023.

Issues

Whether the notional income of a child victim should be based on minimum wages for skilled or unskilled workman? Whether loss of future prospects should be added in the case of a child victim? Whether attendant charges should be awarded and how computed? Whether the compensation for future medical treatment was adequate?

Submissions/Arguments

Appellant argued that compensation was inadequate and claimed higher amounts under various heads including loss of earnings, future prospects, attendant charges, and future medical expenses. Insurance company contended that the High Court's award was just and proper, but suggested token attendant charges of ₹4-5 lakh.

Ratio Decidendi

In motor accident claims involving child victims, the notional income should be based on minimum wages for skilled workman, and 40% future prospects must be added. Attendant charges should be computed using the multiplier method at ₹5,000 per month. Future medical expenses should be assessed based on the nature of disability.

Judgment Excerpts

On 13.04.2013, when she was still a child of less than twelve years of age, the appellant was involved in an accident that left her permanently disabled to the extent of 75%. The minimum wages payable to a skilled workman, as per the Notification dated 01.03.2013 of the Government of Assam, stood at ₹175 per day, which is more acceptable. The High Court failed to consider the loss of future prospects @ 40% of the monthly salary, in terms of the law laid down by this Court in Kajal (supra). Attendant charges would also have to be considered as the appellant would be helpless without assistance.

Procedural History

The claim petition (MAC Case No. 1431 of 2014) was filed before the MACT, Guwahati, which awarded ₹5,59,771/- on 23.02.2018. The appellant appealed to the Gauhati High Court (MACApp./539/2018), which enhanced compensation to ₹18,97,371/- on 20.02.2023. The appellant then filed the present appeal by special leave before the Supreme Court.

Acts & Sections

  • Motor Vehicles Act, 1988: Second Schedule, Clause 6
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