HIMA KOHLI, AHSANUDDIN AMANULLAH
Ram Narain – Appellant
Versus
New India Assurance Co. Ltd. – Respondent
| Table of Content |
|---|
| 1. compensation awarded for loss of a child. (Para 2 , 3) |
| 2. reference to previous case for interest enhancement. (Para 4) |
| 3. assessment of notional income for compensation. (Para 6 , 7) |
| 4. modification of the impugned order. (Para 8 , 9) |
JUDGMENT :
1. Leave granted.
2. The appellants-claimants are aggrieved by the order dated 31st January, 2018 passed by the High Court of Judicature at Allahabad allowing the appeal1[First Appeal from Order No.358 of 2004] filed by them for enhancing the compensation awarded by the Motor Accident Claims Tribunal2[For short ‘the Tribunal’] vide order dated 24th November, 2003 whereby, the Tribunal awarded a sum of Rs.75,000/- (Rupees Seventy five thousand only) in favour of the claimants as compensation for the loss of their nine year old daughter, a student studying in Class IV on the date of the accident i.e. 17th December, 1981, by assessing the notional income of the deceased at Rs.15,000/- (Rupees Fifteen thousand only) p.a.
3. Under the impugned judgment, the High Court has enhanced the compensation payable to the appellants-claimants to a sum of Rs.1,56,000/- (Rupees One lakh fifty six thousand only) and awarded simple interest @ 9%
The Supreme Court held that the notional income for a deceased minor must reflect potential familial contributions, leading to an enhancement of overall compensation for the claimants.
Compensation for minors in fatal accidents should reflect potential contributions, with a notional income of Rs.30,000/- applied, leading to an enhanced total of Rs.5,00,000/-.
Notional figure fixed by the Apex Court since Manju Devi's judgment has been consistently Rs.2,25,000/- for children below the age of 15 years.
The court applied the principle of reckoning income on a notional basis and considered future prospects and personal expenses in calculating compensation.
Point of Law : In spite of repeated directions, Scheduled-II of Motor Vehicles Act, 1988 is not yet amended. Therefore, fixing notional income of Rs.15,000/-per annum for non earning members is not j....
while dealing with the case of compensation in respect of a child of 10 years old reversed the judgment of the High Court affirming the dismissal of the claim petition by the Accidents Tribunal, foll....
The court established that the notional income for a non-earning child should be set at Rs.30,000 per annum, applying a multiplier of 15 for calculating compensation, considering inflation and emotio....
The court established that compensation for the death of a minor must reflect notional income and apply appropriate multipliers based on established precedents.
The court's decision emphasized the importance of accurately assessing the deceased's income, applying the proper multiplier, and considering compensation under conventional heads in motor accident c....
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