A minor’s disability compensation must include future prospects and medically assessed whole-body disability.

On 31 December 2020, a goods vehicle struck the six-year-old claimant while he was playing near his home, causing serious injuries and lasting disability.

The Tribunal awarded ₹51,87,000 in compensation.

The insurer appealed under Section 173(1) of the Motor Vehicles Act, 1988, challenging the quantum and arguing, among other things, that the disability assessment was excessive.

On appeal, a Medical Board assessed the claimant’s whole-body disability at 82.5%.

1. Whether the insurer established that the Tribunal had awarded excessive compensation warranting modification.

2. What order should follow from the Court’s determination of the compensation issue.

Section 173(1) of the Motor Vehicles Act, 1988 provides for an appeal against a Claims Tribunal’s award.

Applying National Insurance Company Ltd. v. Pranay Sethi, the Court allowed a 40% addition for future prospects when assessing the claimant’s future income.

The Court used a monthly income of ₹15,000, referring to the Central Government notification dated 3 January 2020, and applied a multiplier of 15 to the child’s future-income claim.

The Court assessed disability by reference to the Medical Board’s whole-body disability certificate.

The Court rejected the insurer’s contention that negligence should be attributed to the child, noting that the driver had pleaded guilty and that negligence could not be fixed on the minor.

It found the Tribunal’s income assessment based on another case inappropriate absent comparable circumstances, and instead used monthly income of ₹15,000, added 40% for future prospects, applied multiplier 15, and used the Medical Board’s 82.5% disability assessment. This produced ₹31,18,500 for loss of future income.

The Court also revised several other heads to reflect the child’s injuries, treatment needs, loss of amenities, and the parents’ lost income during the child’s laid-up period; it left medical expenses at ₹25,000.

The insurer was directed to deposit the compensation and accrued interest before the Tribunal within eight weeks of receiving the certified judgment.