Case Note & Summary
The appellants, parents of the deceased minor Suraj, filed a claim petition before the Motor Accident Claims Tribunal at Mapusa seeking compensation of Rs. 4,00,000/- for the death of their son in a motor vehicle accident. The accident occurred on 5th September 1997 when the deceased, aged 11 years, was knocked down by a bus driven by respondent No.1 and owned by respondent No.2, which was insured with respondent No.3. The Tribunal, after finding the driver negligent, awarded only Rs. 55,000/- as compensation, which the appellants challenged in appeal before the High Court of Bombay at Goa. The High Court considered the principles for computing compensation for the death of a minor child. It noted that the Tribunal had not applied the correct method under the Motor Vehicles Act, 1988, which provides for a notional income of Rs. 15,000/- per annum for a minor and application of a multiplier of 15. The Court held that the loss of dependency should be calculated as 2/3rd of the notional income (Rs. 10,000/-) multiplied by 15, resulting in Rs. 1,50,000/-. Additionally, the Court awarded Rs. 10,000/- for loss of consortium to each parent and Rs. 5,000/- for funeral expenses, but noted that these were already included in the notional calculation. The Court enhanced the total compensation to Rs. 1,50,000/- with interest at 6% per annum from the date of the claim petition until payment, and directed the insurance company to pay the enhanced amount within four weeks.
Headnote
A) Motor Accident Claims - Compensation for Death of Minor - Loss of Dependency - The parents of a deceased minor child are entitled to compensation for loss of dependency based on notional income of the deceased, applying appropriate multiplier as per Second Schedule to Motor Vehicles Act, 1988 - Held that the Tribunal erred in awarding only Rs. 55,000/- without considering notional income and multiplier (Paras 4-6). B) Motor Accident Claims - Compensation for Death of Minor - Loss of Consortium - Parents are entitled to compensation for loss of consortium and love and affection under conventional heads - Held that a sum of Rs. 10,000/- each for loss of consortium and Rs. 5,000/- for funeral expenses should be awarded (Para 6). C) Motor Accident Claims - Appeal Against Quantum - Enhancement of Compensation - The High Court, in appeal, can reassess the quantum of compensation and enhance it if the Tribunal has not applied correct principles - Held that the compensation was enhanced from Rs. 55,000/- to Rs. 1,50,000/- with interest at 6% per annum (Paras 5-7).
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a minor child was just and proper, and whether the appellants are entitled to enhancement.
Final Decision
The appeal is partly allowed. The compensation is enhanced from Rs. 55,000/- to Rs. 1,50,000/- with interest at 6% per annum from the date of the claim petition until payment. The insurance company is directed to pay the enhanced amount within four weeks.
Law Points
- Compensation for death of minor child
- Loss of dependency
- Loss of consortium
- Section 163A Motor Vehicles Act
- 1988
- Section 166 Motor Vehicles Act
- Notional income
- Multiplier method
