Compensation for death of 10-year-old child enhanced to Rs. 8,70,000 following Supreme Court precedent.

These are cross-appeals arising from an award dated 05.08.2019 passed by the First Additional Motor Accident Claims Tribunal (MACT), Raipur

The case involves the death of a 10-year-old boy in a motor vehicle accident

The MACT awarded Rs. 5,00,000/- as compensation

The Insurance Company (Appellant in MAC 1848/2019) sought exoneration from liability, alleging the driver lacked a valid license and the owner lacked a valid permit

The Claimants (Appellants in MAC 1770/2019) sought enhancement of the compensation amount

1. Whether the Insurance Company is liable to be exonerated due to the alleged lack of a valid driving license and permit for the offending vehicle.

2. Whether the compensation awarded (Rs. 5,00,000/-) for the death of a 10-year-old child is just and proper or requires enhancement.

The Court primarily applied the principles for determining compensation in cases involving the death of minors as established by the Supreme Court of India in Thangavel & Ors. v. The Managing Director, Tamil Nadu State Transport Corporation Limited (2025 SCC OnLine SC 1649), which set a benchmark of Rs. 8,70,000/- for the death of a 10-year-old

Regarding the insurer's liability, the court applied the evidentiary standard that the burden of proof lies on the insurance company to establish a breach of policy conditions, such as the absence of a valid license or permit, under the Motor Vehicles Act

The Court dismissed the Insurance Company's appeal after reviewing the record, finding that the insurer failed to provide sufficient evidence to prove that the driver lacked an effective license or that the owner lacked a valid permit

The Tribunal's finding of fact in this regard was held to be correct

Regarding enhancement, the Court observed that in similar circumstances involving a 10-year-old decedent, the Supreme Court in Thangavel (supra) determined that Rs. 8,70,000/- was the appropriate compensation

Consequently, the Court found the Tribunal’s award of Rs. 5,00,000/- to be insufficient and adjusted the quantum to align with the judicial precedent

It held that the compensation is enhanced from Rs. 5,00,000/- to Rs. 8,70,000/-

The Respondents (Insurer/Owner/Driver) are directed to pay the additional amount of Rs. 3,70,000/- with 9% interest per annum from the date of the claim application until realization, to be deposited within 45 days

All other conditions of the original award remain intact