IMPORTANT POINT
The court established a dual-component methodology for calculating compensation for minors injured in motor vehicle accidents, addressing both pecuniary and non-pecuniary losses.

JUDGMENT :

1. For convenience, this order has been indexed as follows:

I. BIFURCATION OF DEATH CASES FROM THAT OF INJURIES IN THE PRESENT BATCH OF APPEALS:

2. In a batch of appeals disposed of by a separate order on 17.09.2024, this Court has elaborately detailed the manner in which compensation should be determined and paid to the parents in the unfortunate event of losing their minor child in a motor vehicle accident.

3. This Court has also reiterated the general principles that have been relating to compensation that would have to be paid to satisfy the two components of compensation, namely — the components of ‘pecuniary’ and ‘non-pecuniary’ loss.

4. For the pecuniary loss suffered by the parents i.e., the future dependency of the parents on their children, this Court has held that the compensation payable should be the average of the sum total of the compensation determined by the two methods of determining the compensation, namely — ‘the multiplier method’ indicated in the Second Schedule of the Motor Vehicles Act, 1988 (“the MV Act”), and ‘the lump sum amount’ prescribed in the Rules framed under the Railways Act, 1989.

5. However, while computing this sum, this Court has held in MFA 11440/2011 and connected matters that to the notional income of Rs.15,000/-and the lump sum compensation of Rs.4 lakhs, the recorded inflation rate for every year should be compounded annually. A ready reckoner of the compensation payable is also indicated therein in the form of 4 Tables.

6. The said judgment provides for determination of compensation for both pecuniary and non-pecuniary loss that the parents would entail in the event of their child being killed in a motor vehicle accident.

7. These batch of appeals relate to cases where minors have suffered injuries as a result of a motor vehicle accident. Thus, the manner in which the pecuniary and non-pecuniary loss that befalls a minor child, keeping in mind that compensation is granted only once, will have to be ascertained in this judgment.

8. The pecuniary loss — which would include the financial loss suffered by the parents of the minor and also other future losses that the minor may incur — will also have to be estimated. For this, the most appropriate method for determining these two losses, which together form the compensation payable to the minor, will have to be laid out in detail.

9. In fact, the present appeals were also heard along with the above mentioned batch of appeals relating to compensation payable for a minor’s death. Learned counsel appearing for the claimants as well as the learned counsel for the insurers were heard on several occasions and their views were elicited in relation to the manner in which compensation should be paid in cases relating to injuries suffered by minors.

10. Learned Counsel, on both sides, took the Court through the entire law relating to compensation payable under the MV Act and also rendered their valuable suggestions and placed on record all relevant citations relating to compensation payabl