Lumpsum compensation for minor's disability above ten percent must align with Master Mallikarjun guidelines.

In January 2004, the appellant, then an eight-year-old minor, was injured by a motorcycle driven in a negligent manner

The victim suffered permanent partial disability, which was eventually settled at 11% for the body as a whole

Seeking compensation, the claimant approached the Motor Accident Claims Tribunal (MACT), which awarded Rs. 1,25,000 with 7.5% interest

Dissatisfied with the amount, the claimant appealed to the High Court specifically on the grounds of quantum

1. Whether the compensation awarded by the Tribunal was just and in accordance with established judicial precedents regarding minor victims with permanent disabilities

2. Whether the appellant is entitled to enhanced compensation under the heads of non-pecuniary damages based on the percentage of his disability

The Court primarily applied the principles established by the Supreme Court of India in Master Mallikarjun v. Divisional Manager, National Insurance Company Limited & Anr. (2014)

This precedent mandates a structured formula for compensating minor children based on the extent of their disability: if the disability is between 10% and 30% of the whole body, a lumpsum of Rs. 3,00,000 is prescribed for non-pecuniary heads such as pain and suffering, mental shock, and loss of amenities

The Court observed that the appellant was a minor at the time of the accident and that both parties had consented to a disability rating of 11%

The Court found that the Tribunal failed to properly apply the Master Mallikarjun ratio, which dictates a specific lumpsum for the 10-30% disability bracket

While the Court upheld the Tribunal’s award of Rs. 5,000 for medical expenses as proper, it determined that the non-pecuniary compensation must be adjusted to the mandatory Rs. 3,00,000 mark to reflect the physical and mental hardship faced by a child with a lasting impairment

The respondent Insurance Company was ordered to pay the additional sum of Rs. 1,80,000 with interest at 7.5% per annum from the date of the claim petition until realization. The Court directed the Tribunal to disburse the amount to the claimant upon deposit