Karnataka High Court applies skilled-worker minimum wages to calculate compensation for a child killed in a road accident

The appellants, parents of the deceased, challenged the Tribunal’s award in a claim arising from a 22 April 2013 collision between a NEKRTC bus and an autorickshaw.

Their son, aged 14, died at the scene.

The Tribunal awarded Rs.5,00,000 and apportioned liability equally between the bus owner and the autorickshaw owner.

The appeal sought enhancement of compensation; it was filed with a delay of 1,087 days.

Whether the compensation awarded for the death of the 14-year-old deceased should be reassessed and enhanced by applying the principles governing the assessment of a minor’s income.

Whether the enhanced compensation should carry interest for the period of delay, and whether the Tribunal’s apportionment of liability should be altered.

Section 173(1) of the Motor Vehicles Act provides for an appeal against a Claims Tribunal’s award.

In Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, 2025 SCC OnLine SC 3446, the Supreme Court held that a minor who dies or suffers permanent disability should not be treated merely as a non-earning individual; for loss-of-income assessment, at least the minimum wages of a skilled workman for the relevant State and period should be considered.

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

Under Sarla Verma v. Delhi Transport Corporation, 2009) 6 SCC 121, 50% is deducted for the personal and living expenses of a deceased bachelor.

Under National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680, 40% is added for future prospects for a person below 40 years, and the conventional heads include funeral expenses and loss of estate.

Magma General Insurance Company Ltd. v. Nanu Ram, (2018) 18 SCC 130, supports an award of filial consortium to each parent.

Applying the skilled-worker benchmark, the Court adopted the KSLSA notional income of Rs.7,000 per month for 2013.

It annualised that income to Rs.84,000, added 40% for future prospects, deducted 50% for personal expenses, and applied a multiplier of 18, resulting in Rs.10,58,400 for loss of dependency.

It added Rs.80,000 for filial consortium and Rs.30,000 for funeral and transportation expenses and loss of estate, fixing total compensation at Rs.11,68,400.

Because the appeal was delayed by 1,087 days, it excluded that period from interest on the enhanced compensation.

It left the Tribunal’s 50:50 liability apportionment and the apportionment between the claimants undisturbed.

The award was modified to enhance total compensation from Rs.5,00,000 to Rs.11,68,400, with interest at 6% per annum from the date of the claim petition until realization, except on the enhanced compensation for the 1,087-day delay.

NEKRTC was directed to deposit 50% of the total compensation within four weeks; the existing liability and claimant apportionments remained unchanged.