Rs 27 lakh compensation to 9-year-old road accident as court rules permanent disability results in ‘loss of dignity’

Justice Sudeepti Sharma noted that the doctor’s report categorically deposed that disability can be increased with the passage of time and requires reassessment after five years.

The order added that it is trite that permanent disability suffered by an individual not only impairs his cognitive abilities and his physical abilities, but there are multiple non-quantifiable implications for the victim.

Citing the doctor’s report regarding the disability suffered by the child, Justice Sharma said that this fairly concludes the fact that the appellant has suffered an immense amount of pain and agony due to the accident in question.

‘There are fewer chances of any improvement in disability’

• The Supreme Court has settled the law regarding the grant of compensation with respect to the disability.
• A perusal of the award reveals that the appellant was nine years of age at the time of the accident.
  The tribunal has erred in awarding a lump sum amount for his injury and not calculating the loss of income as per the settled law on compensation; therefore, this court deems it fit to recalculate the same.
• For assessing the income of the appellant, reliance can be placed upon the recent pronouncement Hitesh Nagjibhai Patel v Bababhai Nagjibhai Rabari, where it has been categorically held that a minor child who dies or suffers permanent disability in a motor vehicle accident cannot be equated with a non-earning individual merely because the child was not engaged in gainful employment at the time of the accident.
• The court has further clarified that, in such cases, the computation of compensation under the head “loss of income” must be undertaken by adopting at the very least the minimum wages prescribed for a skilled workman as notified for the relevant period in the State where the cause of action arises.

• The income of the appellant is assessed as Rs 3,800, keeping in view the minimum wages for skilled labour at the time of the accident.
• The tribunal erred in awarding an amount of Rs 50,000 towards future prospects.
• The disability certificate was proved by Dr, who categorically deposed that the disability can be increased with the passage of time and requires reassessment after five years.
• Furthermore, he stated that there are fewer chances of any improvement in disability suffered by the claimant/appellant due to the accident in question.

‘Rs 5 lakh for loss of marriage prospects’

• Perusal of the award shows that the tribunal erred in awarding a meagre amount of compensation under the head of ‘loss of marriage prospects’, despite the claimant being only nine years old at the time of the accident and having his entire life before him.
• The tribunal failed to consider the impact of injury on his ability to marry, find a life partner, and enjoy normal matrimonial prospects.
• Considering the peculiar facts and circumstances of this case, this court deems it fit to award Rs 5 lakh under the head of loss of marriage prospects.
• A further perusal of the award reveals that the tribunal has awarded Rs 1 lakh to the claimant on account of his disability.
• Considering the age of the appellant, 40 per cent is to be added as future prospects.
• Moreover, no multiplier was applied by the tribunal. In view of the age of the minor, the appropriate multiplier of 18 is liable to be applied.

Case of accident and legal battle for compensation

The appellant was nine years old when he sustained grievous injuries in a motor vehicle accident on November 23, 2009. The MACT had initially awarded him Rs 4.96 lakh with six per cent interest in July 2013. Dissatisfied with the quantum, the appellant moved the high court for enhancement.

Appearing for the appellant, advocates Nitesh Jhajhria and Akshay Sharma submitted that the compensation awarded by the tribunal is on the lower side and deserves to be enhanced. He prayed that the present appeal be allowed and the compensation awarded to the appellant be enhanced, as per the latest law.

Representing the Insurance company, advocate V K Garg argued that the amount of compensation as assessed by the tribunal has rightly been granted to the appellant.

How MACT calculate compensation

The MACT in India calculates death compensation using the multiplier method established by the Supreme Court in the landmark cases of Sarla Verma v Delhi Transport Corporation and National Insurance Co Ltd v Pranay Sethi.