Case Note & Summary
The case arises from a motor accident claim petition filed by the parents of a minor girl, Pushpaben, aged 8 years, who died in a road accident on 27.08.2006. The accident occurred when the deceased and her mother were standing on the roadside waiting for a vehicle, and a Maruti Fronti car driven rashly and negligently by the original opponent no.1 hit the deceased. She was taken to Civil Hospital but was declared dead. The claimants sought compensation of Rs. 10,00,000/-. The Motor Accident Claims Tribunal (Auxiliary), Surat, partly allowed the claim petition and awarded Rs. 3,91,000/- with 9% interest per annum. The insurance company appealed against the award, and the claimants filed a cross-objection seeking enhancement. The High Court considered the submissions. The court noted that for a minor child, the Second Schedule of the Motor Vehicles Act, 1988 provides for a notional income of Rs. 25,000/- per annum. Applying a multiplier of 15 and deducting 1/3rd for personal expenses, the loss of dependency was calculated as Rs. 2,50,000/-. Adding Rs. 1,00,000/- for loss of love and affection, Rs. 25,000/- for funeral expenses, and Rs. 16,000/- for loss of estate, the total compensation came to Rs. 3,91,000/-. The court found the award just and proper and dismissed both the appeal and the cross-objection.
Headnote
A) Motor Accident Claims - Compensation for Minor - Notional Income - For a deceased minor aged 8 years, notional income of Rs. 25,000/- per annum is to be taken as per Second Schedule of Motor Vehicles Act, 1988 - Multiplier of 15 applied - Deduction of 1/3rd for personal expenses - Tribunal's award of Rs. 3,91,000/- upheld - Held that the compensation is just and proper (Paras 6-9). B) Motor Accident Claims - Interest Rate - 9% per annum - Tribunal awarded interest at 9% per annum from date of petition till realization - No interference required - Held that the rate is reasonable (Para 10).
Issue of Consideration
Whether the compensation awarded by the Tribunal for the death of a minor child is just and proper, and whether the insurance company is liable to pay the same.
Final Decision
The High Court dismissed the appeal and the cross-objection, upholding the Tribunal's award of Rs. 3,91,000/- with 9% interest per annum.
Law Points
- Notional income for minor
- multiplier for minor
- compensation under Motor Vehicles Act
- 1988
- Section 163A
- Section 166
