Case Note & Summary
The appellant, a minor aged 9 years at the time of accident, through his guardian father, filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking compensation of Rs. 5,00,000/- for injuries sustained in a truck accident on 09.06.1996. The claimant was crossing Solapur-Nagar road when a truck bearing No. DL-1G/B-1166 hit him, causing multiple injuries leading to amputation of his left hand from shoulder and part of his left foot. He was hospitalized for 75 days and suffered permanent disablement. The Motor Accident Claims Tribunal, Ahmednagar, awarded Rs. 3,05,000/- as compensation vide judgment and award dated 25.11.2003. Aggrieved by the inadequacy, the claimant appealed under Section 173 of the Motor Vehicles Act. The High Court considered the submissions of the appellant's counsel, who relied on the Supreme Court judgment in Kajal Vs. Jagdish Chand & Ors. (Civil Appeal No. 735 of 2020) to argue that the multiplier method should be applied even for child injuries, and that the Tribunal's lump-sum assessment was erroneous. The court analyzed that the Tribunal failed to assess 'just' compensation and adopted a lump-sum approach ignoring the established multiplier method. The High Court held that for a child with no income, notional income of Rs. 15,000/- per annum should be taken, and applying multiplier of 18 (as per Sarla Verma case), the pecuniary loss would be Rs. 2,70,000/-. Additionally, the court awarded Rs. 1,00,000/- for pain and suffering, Rs. 1,00,000/- for loss of amenities, Rs. 50,000/- for future medical expenses, and Rs. 30,000/- for special diet and attendant charges, totaling Rs. 5,50,000/-. However, considering the 100% functional disability and the need for lifelong care, the court further enhanced the compensation to Rs. 8,00,000/-. The appeal was allowed, and the respondent insurance company was directed to pay the enhanced amount with interest at 6% per annum from the date of claim petition till realization.
Headnote
A) Motor Accident Claims - Compensation for Child Injury - Multiplier Method - Just Compensation - Sections 166, 173 Motor Vehicles Act, 1988 - The appeal challenged the inadequacy of compensation awarded to a 9-year-old child who suffered amputation of left hand and left foot in a truck accident. The Tribunal had awarded Rs. 3,05,000/- on lump-sum basis. The High Court held that the multiplier method is widely accepted for fixing compensation even in cases of injury to a child, and the Tribunal erred in not adopting it. The court enhanced compensation to Rs. 8,00,000/- applying multiplier of 18 and notional income of Rs. 15,000/- per annum, with additional amounts for pain and suffering, loss of amenities, and future medical expenses. (Paras 1-10) B) Motor Accident Claims - Non-Pecuniary Damages - Amputation - Loss of Amenities - Sections 166, 173 Motor Vehicles Act, 1988 - The court held that the paltry sum awarded by the Tribunal towards permanent disability and loss of amenities was not justified. Considering the nature of disability (100% functional disability due to amputation of two limbs), the court awarded Rs. 1,00,000/- for pain and suffering, Rs. 1,00,000/- for loss of amenities, and Rs. 50,000/- for future medical expenses, in addition to the pecuniary loss calculated by multiplier method. (Paras 8-10)
Issue of Consideration
Whether the compensation awarded by the Motor Accident Claims Tribunal to a child claimant who suffered amputation of left hand and left foot was just and proper, and whether the multiplier method should be applied for assessment of compensation in case of injury to a child.
Final Decision
The appeal is allowed. The judgment and award dated 25.11.2003 passed by M.A.C.T. Ahmednagar in M.A.C.P. No. 348 of 1997 is modified. The claimant is entitled to total compensation of Rs. 8,00,000/- (Rupees Eight Lakhs only) instead of Rs. 3,05,000/- awarded by the Tribunal. The respondent no. 2 (The New India Assurance Co. Ltd.) shall deposit the enhanced amount of Rs. 4,95,000/- (Rs. 8,00,000 - Rs. 3,05,000) with interest at the rate of 6% per annum from the date of claim petition till realization, within eight weeks from today. The amount already deposited shall be adjusted. The claimant shall be entitled to withdraw the amount with accrued interest.
Law Points
- Just compensation
- multiplier method for child injury
- non-pecuniary damages for amputation
- Motor Vehicles Act Section 166
- Motor Vehicles Act Section 173
