Parents awarded ₹14.33 lakh for 9-year-old’s death after court applies skilled-worker minimum-wage standard to child’s compensation calculation

The appellants, parents of a nine-year-old girl, sought compensation for her death after a tanker struck her near Dhulkhed Bus Stand on 25 December 2016.

The Tribunal found the claimants entitled to ₹5,25,000 with interest at 6% per annum.

The parents appealed, contending that the compensation was inadequate and relying on the Supreme Court’s decision in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari.

Whether the compensation for the death of a minor child required reassessment by reference to the minimum wages payable to a skilled workman, as stated in Hitesh Nagjibhai Patel.

Whether the claimants were entitled to enhanced compensation, and whether interest was payable on the enhanced amount during the 867-day delay in filing the appeal.

Under Section 173(1) of the Motor Vehicles Act, an aggrieved party may appeal against a Tribunal’s award.

The Court applied Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, which states that a minor child who dies or suffers permanent disability in a motor vehicle accident should not be treated as a non-earning individual; compensation under loss of income should be assessed, at minimum, using the skilled-worker minimum wage notified for the relevant State and period.

It held that a declaration of law ordinarily applies retrospectively to pending matters unless the Supreme Court limits its operation.

The Court also relied on the Karnataka State Legal Services Authority’s notional-income chart as a proxy for skilled-worker minimum wages, Sarla Verma v. Delhi Transport Corporation for a 50% deduction towards a bachelor’s personal expenses and multiplier principles, National Insurance Co. Ltd. v. Pranay Sethi for 40% future prospects, and Magma General Insurance Co. Ltd. v. Nanu Ram for filial consortium.

Applying Hitesh Nagjibhai Patel retrospectively, the Court assessed the deceased child’s monthly income at ₹8,750, the Karnataka Legal Services Authority’s notional income for 2016.

It added 40% for future prospects, deducted 50% for personal expenses, and applied multiplier 18, producing dependency compensation of ₹13,23,000.

It added ₹80,000 for the parents’ filial consortium and ₹15,000 each for funeral expenses and transportation, making total compensation ₹14,33,000.

Because the appeal was delayed by 867 days, the Court held that interest was not payable on the enhanced compensation for that period.

The claimants were awarded total compensation of ₹14,33,000, in place of ₹5,25,000, with interest at 6% per annum from the date of the claim petition, subject to the exclusion of interest on the enhanced compensation for the 867-day delay.

The Insurance Company was directed to deposit the compensation before the Tribunal within six weeks, and a modified award was ordered.