Why Punjab and Haryana High Court doubled compensation to Rs 14 lakh for death of 7th grade student

Punjab Haryana High Court News: The Punjab and Haryana High Court was hearing the appeal filed by the child’s parents seeking enhancement of the earlier received Rs 6.90 lakh compensation.

Punjab and Haryana High Court child future salary 14 lakhPunjab Haryana High Court News: The Punjab and Haryana High Court found that the parents of the child agreed to amicably settle the matter with the insurance company concerned. (Image is created using AI)

Punjab Haryana High Court News: Considering the future prospects and income of a seventh-grade child who lost his life in an accident, the Punjab and Haryana High Court recently enhanced the compensation awarded to his parents from Rs 6.40 lakh to Rs 14.18 lakh.

Justice Archana Puri was hearing the parents’ appeal seeking enhancement of compensation awarded by the tribunal concerned following the death of their 14-year-old son in a road accident.

Justice Archana Puri Delhi High Court Justice Archana Puri found that the child was in the seventh standard at the time of his death. (Image is enhanced using AI)

“In view of the settlement reached between the parties, the notional earnings of the deceased are taken as Rs 8,500 per month… After addition of 40% i.e. Rs.40,800/-, on the count of the ‘future prospects..”, the court observed.

Findings

  • The present appeal has been filed by the child’s parents, whose child was a student in class seven at the time of his death.
  • Advocate Vani Singh, representing the parents, submitted that the victim was good at sports, but no evidence relating to the same was provided by the tribunal.
  • The insurance company concerned offers an amicable settlement with the child’s parents if the compensation is calculated considering the extent of earnings of the minor as Rs 8,500 per month, and the recomputation is done in accordance with the law.
  • Singh accepted this offer made by advocate Rahul Pathania, who was appearing for the insurance company concerned.
  • The notional earnings of the victim are now taken as Rs 8,500 per month, amounting to an annual income of Rs 1.02 lakh along with an additional 40% on account of “future prospects” of the child.
  • Considering the victim’s age, ‘18’ is the suitable multiplier to be applied.
  • The parents of the victim are entitled to the compensation of Rs 14. 18 lakh.
  • The tribunal has already awarded an amount of Rs 6.90 lakh from the Rs 14.18 lakhs, and therefore, the parents are entitled to an enhanced amount of Rs 7.28 lakh.
  • The insurance company concerned should pay the rest of the amount within a period of 6 weeks.
  • The parents will get an interest at the rate of 6 per cent per annum on the enhanced amount from the date of filing of the appeal.
  • If the insurance company concerned fails to make the payment in the given period, it will be liable to pay penal interest of 8 per annum, till realisation.

Background

  • The child who died in the accident was a 14-year-old studying in the seventh standard.
  • Previously, the tribunal concerned considered the notional earnings of the victim as Rs 40,000 annually and applied a multiplier of ‘16’ to calculate the compensation and awarded Rs.6.40 lakh to the parents.
  • Rs 50,000 was also awarded to the parent, considering the loss of love and affection, funeral expenses and last rites.

Richa Sahay is a Legal Correspondent for The Indian Express, where she focuses on simplifying the complexities of the Indian judicial system. A law postgraduate, she leverages her advanced legal education to bridge the gap between technical court rulings and public understanding, ensuring that readers stay informed about the rapidly evolving legal landscape. Expertise Advanced Legal Education: As a law postgraduate, Richa possesses the academic depth required to interpret intricate statutes and constitutional nuances. Her background allows her to provide more than just summaries; she offers context-driven analysis of how legal changes impact the average citizen. Specialized Beat: She operates at the intersection of law and public policy, focusing on: Judicial Updates: Providing timely reports on orders from the Supreme Court of India and various High Courts. Legal Simplification: Translating dense "legalese" into accessible, engaging narratives without sacrificing factual accuracy. Legislative Changes: Monitoring new bills, amendments, and regulatory shifts that shape Indian society. ... Read More

 

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