Case Note & Summary
The appeal arises from a motor accident claim where the claimant-appellant, Deepak Singh alias Deepak Chauhan, a student, suffered grievous injuries in a collision on 12 October 2012. The Motor Accident Claims Tribunal awarded Rs.7,09,303 with interest at 7.5% per annum. The High Court enhanced it to Rs.23,90,719 but relied on minimum wages to compute notional income. The Supreme Court, following its decision in Navjot Singh v. Harpreet Singh, held that the notional income of a student should not be equated to minimum wages of an unskilled worker. It fixed the notional income at Rs.10,000 per month, added 40% towards future prospects, applied a multiplier of 18, and awarded compensation under various heads including loss of income, medical expenses, attendant charges, loss of amenities/prospects of marriage, pain and suffering, and special diet. The total compensation was enhanced to Rs.34,56,103 with interest at 7.5% per annum, excluding the 642-day delay in filing the appeal. The appeal was allowed.
Headnote
A) Motor Accident Compensation - Notional Income of Student - Notional income of a student undergoing a degree course should not be taken as equivalent to minimum wages of an unskilled worker; it should be fixed at a reasonable amount considering future prospects - In the instant case, the claimant was a student in his twenties; the Supreme Court fixed notional income at Rs.10,000 per month following the precedent in Navjot Singh v. Harpreet Singh - Held that the High Court erred in relying on minimum wages (Paras 6-8). B) Motor Accident Compensation - Permanent Disability - Future Prospects - Where the claimant suffers permanent disability, 40% of the income should be added towards future prospects as per the principle in Raj Kumar v. Ajay Kumar - The multiplier should be applied based on the age of the claimant - Held that the compensation must be recomputed accordingly (Paras 7-8). C) Motor Accident Compensation - Heads of Compensation - The claimant is entitled to compensation under heads including loss of income, medical expenses, attendant charges, loss of amenities/prospects of marriage, pain and suffering, and special diet - The total compensation was enhanced to Rs.34,56,103 with interest at 7.5% per annum, excluding the delay period of 642 days - Held that the appeal is allowed (Paras 8-10).
Issue of Consideration
Whether the High Court erred in fixing the notional income of the claimant-appellant, a student, at minimum wages instead of a higher notional income, and whether the compensation awarded was just and proper.
Final Decision
The Supreme Court allowed the appeal, enhanced the compensation to Rs.34,56,103 with interest at 7.5% per annum from the date of filing of the claim petition, excluding the 642 days delay in preferring the appeal.
Law Points
- Notional income of a student should not be equated to minimum wages of unskilled worker
- Future prospects to be added in case of permanent disability
- Multiplier as per age of claimant
- Compensation for loss of amenities and prospects of marriage
