Compensation for a deceased minor must account for future prospects and the applicable multiplier.

On 26 August 2023, a Bolero truck allegedly collided with an Activa near Umaniyavadar Petrol Pump while the deceased minor was travelling with a claimant from Tared to Mahuva. The minor sustained fatal injuries.

Her legal representatives filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking ₹10,00,000. The Motor Accident Claims Tribunal, Mahuva, awarded ₹5,34,000 by judgment dated 19 November 2024. The claimants appealed under Section 173, contending that the compensation was inadequate

Whether the Tribunal erred in assessing the compensation payable to the claimants for the minor’s death

Whether the claimants were entitled to enhancement of the award, and, if so, in what amount

Sections 166 and 173 of the Motor Vehicles Act, 1988 respectively provide for a claim for compensation and an appeal against an award.

The Court applied the principle that compensation under the Act must be “just and fair,” assessed liberally and on a holistic, pragmatic basis, having regard to fairness, reasonableness and equitable reparation; exact arithmetical compensation for loss of life is not possible

The Court reviewed the Tribunal’s award and concluded that its assessment was erroneous and required suitable enhancement

It calculated future loss using annual income of ₹12,324, increased by 40% for prospective income, reduced by 50% for personal expenses, and applied a multiplier of 18, arriving at ₹18,63,432. It also assessed funeral expenses at ₹18,150, loss of estate at ₹18,150, and loss of consortium at ₹96,800. The resulting total compensation was ₹19,96,532, an enhancement of ₹14,62,532 over the Tribunal’s award.

The Court directed the Insurance Company to deposit the enhanced compensation of ₹14,62,532 with interest at 9% per annum from the date of the claim petition until realization, within eight weeks. The Tribunal was directed to disburse the awarded amount, subject to verification, due procedure and deduction of any unpaid court fees; the remaining directions of the Tribunal were left unchanged.