Karnataka HC Raises Father’s Compensation for 2-Year-Old Son’s Death to ₹24.27 Lakh, Applying Supreme Court’s Skilled-Wage Benchmark

The appellant’s two-year-old son died after being struck by a vehicle allegedly driven negligently on 20 March 2023

The father sought compensation under the Motor Vehicles Act.

The Tribunal awarded ₹5,15,000 with interest at 6% per annum and directed the insurer to satisfy the award.

The father appealed, seeking enhancement; the insurer opposed the appeal.

Sections 166, 167 and 168 of the Motor Vehicles Act, 1988 permit a legal representative to maintain a claim for compensation, and Section 168 requires the award of just compensation.

In Hiteshbhai Nagjibhai Patel v. Bababhai Nagjibhai Rabari, the Supreme Court held that, for a minor child, loss of income should be assessed at least by reference to the minimum wages for a skilled workman.

The Court relied on Bajaj Allianz General Insurance Co. v. E.C. Asha to adopt the Karnataka State Legal Services Authority’s notional-income chart as a suitable benchmark.

It applied Sarla Verma v. Delhi Transport Corporation for a 50% deduction towards personal and living expenses of an unmarried deceased and the multiplier of 18 for a child below 15; National Insurance Co. Ltd. v. Pranay Sethi for 40% future prospects; Birender v. Mukesh Kumar for a legal representative’s right to claim notwithstanding absence of financial dependency; and Nagappa v. Gurudayal Singh for the Court’s authority to award just compensation exceeding the amount claimed.

Applying Hiteshbhai, the Court assessed the child’s notional monthly income at ₹15,500, the KSLSA figure for 2023, and added 40% for future prospects, producing monthly income of ₹21,700.

It deducted 50% for personal expenses and applied multiplier 18, calculating loss of dependency at ₹23,43,600.

The Court rejected the insurer’s dependency objection: although a two-year-old could not have been supporting his father, the father was a legal representative entitled to claim compensation, and the principles in Hiteshbhai governed assessment for a minor’s death.

It also rejected the submission that recovery was capped by the amount claimed, relying on Nagappa.

It added ₹48,000 for filial consortium, ₹18,000 for funeral expenses and ₹18,000 for loss of estate.

The Court enhanced total compensation from ₹5,15,000 to ₹24,27,600, with interest at 6% per annum from the date of the claim petition until realization.

The insurer was directed to deposit the compensation before the Tribunal within six weeks of receiving the certified judgment, and a modified award was ordered.