Supreme Court Increases Compensation for Child Victim in Road Accident Case
The Supreme Court of India recently ruled in favor of increasing compensation for a child who suffered 75% permanent disability in a road accident. The case, Miss Rushi @ Ruchi Thapa vs. M/s Oriental Insurance Co. Ltd. & Anr., involved a long legal battle for just compensation following a tragic accident in 2013 when the victim was just 12 years old.
Background of the Case
The appellant, a minor child, was severely injured in a motor vehicle accident on April 13, 2013. She was traveling with her father when their vehicle was hit by a Max Pick-Up Van (Registration No. AS-01CC-3349). The accident caused severe hemiparesis in her left upper and lower limbs, leading to a permanent disability of 75%.
Her father, Dhan Bahadur Thapa, filed a compensation claim before the Motor Accident Claims Tribunal (MACT) No. 3, Kamrup (Metro), Guwahati. The tribunal held that the accident was caused due to the negligence of the van driver and ordered the insurer, M/s Oriental Insurance Co. Ltd., to pay compensation.
Legal Issues Raised
- What should be the appropriate compensation for a minor victim suffering permanent disability?
- Whether the MACT erred in reducing the disability assessment from 75% to 50%?
- Whether future medical expenses and loss of future earning capacity should be considered?
Motor Accident Claims Tribunal (MACT) Ruling
The MACT awarded the following compensation:
| Category | Amount (INR) |
|---|---|
| Pain and suffering, hardship, and loss of amenities | 4,00,000 |
| Discomfort, inconvenience, and loss of parental earnings | 25,000 |
| Medical and incidental expenses | 84,771 |
| Future medical expenses | 50,000 |
| Total Compensation | 5,59,771 |
Additionally, an interest rate of 7.5% per annum was awarded from the date of claim filing.
Appeal Before Gauhati High Court
Dissatisfied with the compensation, the appellant, through her father, filed an appeal before the Gauhati High Court. The High Court enhanced the compensation to ₹18,97,371, considering the following:
- The disability certificate indicated a 75% disability, which should have been fully considered.
- The minimum wage for unskilled labor (₹169 per day) was used to compute the notional income.
- Future medical treatment and loss of marriage prospects were considered.
The High Court’s revised calculation was as follows:
| Category | Amount (INR) |
|---|---|
| Medical and hospitalization expenses | 84,771 |
| Pain, suffering, and loss of amenities | 3,00,000 |
| Loss of marriage prospects | 3,00,000 |
| Future medical treatment | 3,00,000 |
| Loss of future earnings (₹5070 x 12 x 15) | 9,12,600 |
| Total Compensation | 18,97,371 |
Appeal Before the Supreme Court
The appellant approached the Supreme Court, seeking further enhancement of compensation. The claim was revised to ₹71,80,000 under various heads, arguing:
- The minimum wage calculation should be based on skilled labor rates.
- Future medical costs should be increased due to the severity of the disability.
- Compensation for an attendant should be included.
Supreme Court’s Analysis
1. Determination of Loss of Future Earnings
The Supreme Court referenced Kajal vs. Jagdish Chand (2020), where the minimum wage for a skilled worker was considered for a child victim. It ruled:
“Considering the permanent disability, the minimum wage for skilled labor (₹175 per day) should be used for computation.”
Accordingly, the notional income was recalculated at ₹5,250 per month, leading to a revised loss of future earnings:
- ₹5,250 x 12 x 15 = ₹9,45,000
- Adding future prospects (40% increase): ₹3,78,000
2. Attendant Charges
The Court held that a child with 75% disability would require lifelong assistance. It applied the multiplier method, calculating:
- ₹5,000 per month x 12 x 15 = ₹9,00,000
3. Future Medical Expenses
The Supreme Court raised the amount from ₹3,00,000 to ₹5,00,000, recognizing the need for continued medical treatment.
4. Revised Compensation
| Category | Amount (INR) |
|---|---|
| Loss of earnings (₹5,250 x 12 x 15) | 9,45,000 |
| Future prospects (40% increase) | 3,78,000 |
| Attendant charges | 9,00,000 |
| Pain, suffering, and loss of amenities | 3,00,000 |
| Loss of marriage prospects | 3,00,000 |
| Future medical treatment | 5,00,000 |
| Medical and hospitalization expenses | 84,771 |
| Total Compensation | ₹34,07,771 |
Final Judgment
- The Supreme Court allowed the appeal and increased the compensation to ₹34,07,771.
- Interest @ 7.5% per annum would apply to the enhanced amount.
- The funds would be placed in fixed deposits to ensure financial security for the victim.
Implications of the Judgment
- Higher Compensation for Child Victims: Recognizes the long-term impact of disabilities in accident cases.
- Use of Skilled Labor Wages for Minors: Establishes a fairer method for calculating loss of future earnings.
- Inclusion of Attendant Charges: Ensures lifelong support for severely disabled victims.
- Judicial Precedents Strengthened: Aligns with Kajal vs. Jagdish Chand and Master Ayush to protect child accident victims.
This judgment sets a significant precedent in motor accident compensation cases, ensuring justice for young victims with permanent disabilities.
Petitioner Name: Miss Rushi @ Ruchi Thapa.Respondent Name: M/s Oriental Insurance Co. Ltd. & Anr..Judgment By: Justice Sanjiv Khanna, Justice Sanjay Kumar.Place Of Incident: Kamrup, Assam.Judgment Date: 05-11-2024.
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