Case Note & Summary
The appellants, parents of a 2-year-old deceased child, filed a claim petition under the Motor Vehicles Act, 1988, seeking compensation for the death of their daughter in a road accident. The Motor Accident Claims Tribunal partly allowed the claim, awarding Rs. 5,80,000/- with interest. The appellants appealed, contending that the Tribunal erred in assessing the notional income of the deceased at Rs. 36,000/- per annum and sought enhancement. The High Court, after hearing the parties, held that for a child of tender age, the notional income should be determined reasonably. Considering the minimum wage rate and precedents, the court fixed the notional income at Rs. 25,000/- per annum. Applying a multiplier of 15, the loss of dependency was calculated at Rs. 3,75,000/-. The court also enhanced the conventional damages to Rs. 70,000/- as per the guidelines in Pranay Shethi, including parental consortium, funeral expenses, and loss of estate. The total compensation was recomputed at Rs. 4,45,000/- with interest at 7.5% per annum from the date of petition. The appeal was partly allowed, and the award was modified accordingly.
Headnote
A) Motor Accident Compensation - Notional Income of Minor Child - Assessment of Income - The Tribunal assessed notional income of a 2-year-old deceased at Rs. 36,000/- per annum, which was challenged as inadequate. The High Court held that for a child of tender age, notional income should be determined based on the minimum wage rate for unskilled workers, and in the absence of specific evidence, a reasonable notional income of Rs. 25,000/- per annum is appropriate, following precedents. (Paras 4-5) B) Motor Accident Compensation - Multiplier for Minor - Application of Multiplier - The Tribunal applied multiplier of 15. The High Court upheld the multiplier of 15 as per the settled law for minor children, relying on the decision in Kishan Gopal v. Lala. (Para 5) C) Motor Accident Compensation - Conventional Heads - Enhancement of Damages - The Tribunal awarded Rs. 40,000/- under conventional heads. The High Court enhanced it to Rs. 70,000/- as per the principles laid down in Pranay Shethi, including Rs. 40,000/- for parental consortium, Rs. 15,000/- for funeral expenses, and Rs. 15,000/- for loss of estate. (Para 6)
Issue of Consideration
Whether the Tribunal erred in assessing the notional income of a 2-year-old deceased child at Rs. 36,000/- per annum and whether the compensation awarded is just and proper.
Final Decision
The appeal is partly allowed. The judgment and award of the Tribunal is modified. The appellants are entitled to total compensation of Rs. 4,45,000/- with interest at 7.5% per annum from the date of petition till realization. The respondent No. 2 is directed to deposit the enhanced amount within eight weeks.
Law Points
- Notional income for a child of tender age
- multiplier for minor
- conventional damages under Motor Vehicles Act
