Compensation for child’s death raised to ₹11.83 lakh using skilled-worker minimum wage in Chhattisgarh High Court appeal

Ritesh Das, aged about nine, died in a road accident on 15 July 2019.

The Motor Accident Claims Tribunal, Katghora, awarded his parents lump-sum compensation of ₹5,00,000.

The parents appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement, contending that compensation should be assessed using minimum wages for a skilled worker in light of Hitesh Nagjibhai Patel.

1. Whether compensation for the death of a minor child should be assessed by treating the child’s income as at least the minimum wage payable to a skilled worker, rather than by awarding a lump sum.

2. Whether the Tribunal’s award of ₹5,00,000 required enhancement after applying the appropriate income, future prospects, deduction, multiplier and conventional heads.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against a Claims Tribunal award.

In Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, relying on Kajal v. Jagdish Chand and Baby Sakshi Greola v. Manzoor Ahmad Simon, the Supreme Court held that a child who dies or suffers permanent disability in a motor accident should not be treated as a non-earning individual merely because the child was not employed; loss of income must be calculated, at minimum, by reference to the notified wages of a skilled worker in the relevant State and period.

The Court also applied National Insurance Co. Ltd. v. Pranay Sethi, Sarla Verma v. Delhi Transport Corporation and Magma General Insurance Co. Ltd. v. Nanu Ram in assessing the multiplier, future prospects, deductions and conventional heads.

Applying Hitesh Nagjibhai Patel, the Court assessed Ritesh’s monthly income at the Chhattisgarh skilled-worker minimum wage applicable on the accident date, ₹9,830, or ₹1,17,960 annually.

It added 40% for future prospects, deducted one-half, and applied a multiplier of 13, selected by reference to the average age of the parents, 46 years.

It then added ₹1,10,000 under conventional heads, producing total compensation of ₹11,83,436.

The appellants were awarded an additional ₹6,83,436, with interest at 6% per annum from the date the claim application was filed until realization; the remaining conditions of the Tribunal’s award were left intact.