Supreme Court Enhances Compensation in Child’s Permanent Disability Case After Accident. Landmark ruling revises compensation for a minor suffering 75% permanent disability, adjusting future earnings, pain, and medical expenses.


Summary of Judgement

 

1. Background and Accident Details
Date of Incident: 13.04.2013
Parties Involved: Appellant, a minor girl under twelve, suffered severe disability (75%) due to a road accident involving a Max Pick-Up Van.
Injury: Permanent disability with severe hemiparesis on left limbs.

2. Initial Compensation by MACT
Tribunal: Motor Accident Claims Tribunal No. 3, Kamrup (Metro), Guwahati.
Case Filed: MAC Case No. 1431 of 2014 by appellant's father.
Insurance & Opposite Parties: M/s. Oriental Insurance Company and the vehicle's owner/driver.
MACT Decision: Reduced disability to 50% and awarded ₹5,59,771 with 7.5% interest.

3. Gauhati High Court's Enhanced Award
Appeal Filed: MACApp./539/2018.
Enhanced Compensation: Increased to ₹18,97,371, restoring disability assessment to 75% as per certificate.
Calculation Basis: Used minimum wage of unskilled labor for future earnings, pain, and marriage prospects.

4. Supreme Court's Final Judgment
Present Appeal by Appellant: Claiming inadequate compensation, quantified at ₹71,80,000.
Court’s Observations and Adjustments:

  • Disability and Income Assessment: Court adjusted notional income to ₹5,250 based on skilled labor wage.
  • Loss of Future Prospects: 40% enhancement of future income.
  • Pain, Suffering, and Marriage Prospects: Confirmed the High Court’s allocation of ₹3 lakh each.
  • Future Medical Expenses: Increased to ₹5 lakh.
  • Attendant Charges: Granted ₹9 lakh based on monthly ₹5,000.

Total Compensation: ₹34,07,771 with additional 7.5% interest from claim filing date.

Final Directions: Funds to be invested in fixed deposits with monthly disbursements. Requests for larger releases are to be made to MACT as needed.


Acts and Sections Discussed

  • Motor Vehicles Act, 1988 - Calculation of notional income and compensation for non-earning minors.
  • Kajal v. Jagdish Chand (2020) 4 SCC 413 - Precedent for compensation to child victims, using minimum wages of skilled labor for future income.
  • Master Ayush vs. Reliance General Insurance Co. - Basis for using notional earnings as per minimum wages.

Legal Ratio

The Court highlighted the necessity to adopt realistic approaches in determining compensation for minors, emphasizing the importance of skilled wages for future earnings and reasonable allowances for lifelong assistance in cases involving permanent disability.


Subjects:

  • Motor Accident Compensation
  • Child Accident Compensation
  • Permanent Disability Claims
  • Notional Income in Motor Accident Cases

The Judgement

Case Title: Miss Rushi @ Ruchi Thapa, through her father Versus Sri Dhan Bahadur Thapa M/s. Oriental Insurance Co. Ltd. and Another

Citation: 2024 LawText (SC) (11) 52

Case Number: CIVIL APPEAL NO. ………………. OF 2024 (@ SPECIAL LEAVE PETITION (C) NO. 6176 OF 2023)

Date of Decision: 2024-11-05