Compensation for a minor’s permanent disability must use minimum wages to assess future income loss.

The claimant, aged 13, sustained a compound distal femur fracture and a fracture of both bones of the right leg in a road traffic accident on 29 March 2024.

The Motor Accident Claims Tribunal awarded him ₹3,25,400, including ₹3,00,000 for pain and suffering, but did not award compensation for loss of future income due to disability.

The claimant appealed under Section 173(1) of the Motor Vehicles Act, 1988, seeking enhancement.

The doctor assessed disability at 66% to the right lower limb and 33% to the whole body.

Under Section 173(1) of the Motor Vehicles Act, 1988, an aggrieved claimant may appeal an award of the Claims Tribunal.

Relying on Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari & Anr., (2025) INSC 1070, the Court applied the principle that, in a minor’s injury claim, minimum wages may be taken as the income for calculating compensation, including loss of future income due to disability.

The Court used the applicable multiplier of 15 and added 40% future prospects because the disability taken into account exceeded 20%.

The Tribunal had relied on Mallikarjun v. Divisional Manager, National Insurance Co. Ltd. & Anr., (2014) 14 SCC 396, in making its original award.

The Court accepted ₹11,606 per month—the minimum wage for unskilled labour in Chittoor—as the claimant’s income and applied a multiplier of 15.

Although the doctor reported 66% disability to the right lower limb, the Court treated one-third of that figure, or 22%, as whole-body disability.

Applying 40% future prospects, it calculated loss of future income at ₹6,43,437.

It further assessed compensation for pain and suffering, loss of amenities, the parent’s loss of income during the laid-up period, medical expenses, and attendant, conveyance, food and nourishment charges, having regard to the injuries and six-day hospital stay.

It awarded an additional ₹4,87,649, with interest at 6% per annum from the date of the petition until realisation, payable by the insurer within six weeks.

The enhanced amount is to be placed in a fixed deposit in the minor claimant’s name until he attains majority; his mother may withdraw the interest quarterly for his expenses.