Punjab and Haryana High Court awards ₹16.8 lakh compensation for death of three-year-old, applying skilled-worker minimum wages and future prospects

The appellants, Asha and Ram Jivan, filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, seeking compensation for the death of their three-year-old son, Krishna, in a road accident at Ambala on 19.04.2019.

The child was struck by a canter bearing registration No. HR-38J-3147, allegedly driven rashly and negligently by respondent No.1, Malkit Singh @ Meeta. Krishna was taken to Civil Hospital, Ambala City, where he was declared dead. An FIR was registered under Sections 279 and 304-A IPC.

The vehicle’s owner was impleaded as respondent No.2 and United India Insurance Company Limited as respondent No.3.

The Motor Accident Claims Tribunal, Ambala, found that the accident occurred due to the rash and negligent driving of the offending vehicle. It awarded Rs.3,70,000, comprising Rs.3,00,000 for the death of the minor child, Rs.15,000 towards funeral expenses, Rs.15,000 towards loss of estate and Rs.40,000 towards consortium, with interest at 7.5% per annum.

The claimants appealed seeking enhancement of compensation.

Whether the compensation awarded for the death of the three-year-old minor child was required to be reassessed by applying the minimum wages payable to a skilled worker in Haryana?

Whether the claimants were entitled to addition of future prospects, deduction for personal expenses, application of the appropriate multiplier and enhanced conventional compensation?

Whether the enhanced compensation was payable by the respondents jointly and severally, with the Insurance Company being directed to satisfy the award?

The Court applied Section 166 of the Motor Vehicles Act, 1988, governing claims for compensation arising from motor accidents.

Relying on Kajal v. Jagdish Chand, (2020) 4 SCC 413, and the clarification in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, 2025 (4) Apex Court Judgments (SC) 36, it held that, in cases involving the death or injury of a child, loss of income is to be assessed on the basis of the minimum wages payable to a skilled worker in the relevant State at the relevant time.

The Court also applied National Insurance Co. Ltd. v. Pranay Sethi, 2017 (4) RCR (Civil) 1009, for addition of future prospects and award of conventional amounts towards loss of consortium, loss of estate and funeral expenses.

For the three-year-old deceased, 40% future prospects, a 50% deduction towards personal expenses and a multiplier of 18 were applied.

The High Court held that the Tribunal’s award of a fixed amount of Rs.3,00,000 for the death of the minor was inconsistent with the settled method of assessment applicable to deceased children.

Since Krishna died in Haryana on 19.04.2019, the Court adopted the minimum wages applicable to a skilled worker in Haryana, namely Rs.10,382.40 per month.

The annual income of Rs.1,24,588.80 was increased by 40% towards future prospects, reduced by 50% for personal expenses and multiplied by 18, resulting in a loss of dependency of Rs.15,69,818.88.

The Court further awarded Rs.40,000 consortium to each parent, Rs.15,000 for loss of estate and Rs.15,000 towards funeral expenses, thereby recalculating the total compensation at Rs.16,79,818.88, rounded off to Rs.16,79,819.

The respondents remained jointly and severally liable, but liability to pay was fastened on the Insurance Company because the vehicle was insured with it.

The claimants were held entitled to total compensation of Rs.16,79,819, as against the original award of Rs.3,70,000.

The enhanced amount of Rs.13,09,819 was directed to carry interest at 7.5% per annum from the date of filing of the claim petition until realization.

The respondents were held jointly and severally liable, with the Insurance Company directed to pay the enhanced compensation within eight weeks of receiving a certified copy of the order.