Compensation for accidental death of a school-going child enhanced to ₹5 lakh.

On 14.04.2010, Km. Vandana @ Nisha, a nine-year-old school-going girl, was hit by vehicle No. UA-07M-2953 while she was going to the market. She sustained injuries and died during treatment at the District Hospital, Gopeshwar, at about 10:00 p.m.

Her claimants sought compensation of ₹6,00,000 before the Motor Accident Claims Tribunal, Chamoli, in Motor Accident Claim Case No. 18 of 2011.

The Tribunal held that the accident resulted from the rash and negligent driving of the vehicle, that the vehicle’s documents and driver’s licence were valid, and that there was no breach of the insurance policy.

Nevertheless, it awarded only ₹70,000 as lump-sum compensation against the Insurance Company.

The claimants filed the present appeal seeking enhancement of compensation.

Whether the compensation of ₹70,000 awarded for the accidental death of a nine-year-old school-going girl was just and adequate?

Whether the compensation should be enhanced to ₹5,00,000 by applying the principles laid down by the Supreme Court in Meena Devi v. Nanu Ram Mahto @ Nemchand Mahto?

The Court applied the principle that compensation under the Motor Vehicles Act must be just, reasonable, and commensurate with the loss caused by the accidental death of a child.

It relied principally on the Supreme Court’s decision in Meena Devi v. Nanu Ram Mahto @ Nemchand Mahto, SLP (Civil) No. 5345 of 2019, decided on 13.10.2022, where compensation of ₹5,00,000 was fixed for the death of a 12-year-old child by adopting a notional annual income of ₹30,000, applying a multiplier of 15, and adding ₹50,000 under conventional heads.

The principles referred to in Meena Devi included those in Kishan Gopal concerning compensation for the death of a non-earning child and Sarla Verma concerning the multiplier method.

The Supreme Court’s interpretation was treated as binding law under Article 141 of the Constitution.

The Tribunal had established negligence and the liability of the Insurance Company, and those findings were not in dispute.

The only question was the adequacy of the amount awarded for the death of the child.

The High Court observed that although the accident occurred in 2010 and the Tribunal decided the claim in 2014, the Supreme Court in Meena Devi had awarded ₹5,00,000 for the death of a 12-year-old child in an accident that occurred as early as 2003.

Since the deceased in the present case was also a school-going child, aged nine years, the Court considered the award of ₹70,000 grossly inadequate and held that the principle in Meena Devi squarely applied.

It therefore enhanced the total compensation to ₹5,00,000.

The judgment and award dated 18.02.2014 were modified, and the compensation payable to the claimants was enhanced from ₹70,000 to ₹5,00,000.

The Insurance Company was directed to deposit the balance amount before the Tribunal within 45 days.

Pending applications, if any, were disposed of.