HIGH COURT OF PATNA
Gurusharan Sharma, J.
Oriental Insurance Co. Ltd – Appellant
vs.
Paspati Prasad and others – Respondents
M.A. No. 432 of 1997
Decided On : 8.5.1998
Compensation - Motor Accident - Lumpsum basis for death of a child
Fact of the Case:
Raju Prasad, a 6-year-old child died in a motor accident. The Motor Vehicles Accident Tribunal awarded Rs. 1,25,000 as compensation, based on an error in assessing compensation using notional income and multiplier for a non-earning member.
Finding of the Court:
The court modified the compensation to Rs. 50,000, considering the status of the parties, financial condition of the family, future expectancy of the deceased, and loss of love and affection of the parents. The interest granted by the Tribunal was not interfered with.
Issues: Assessment of compensation for the death of a child in a motor accident, error in using notional income and multiplier for a non-earning member.
Ratio Decidendi: In case of death of a child in a motor accident, compensation should be awarded on a lumpsum basis, considering the status of the parties, financial condition of the family, future expectancy of the deceased, and loss of love and affection of the parents. The intention of the Parliament in the Motor Vehicles Act, 1988, guides the determination of compensation in case of death of a child.
Final Decision: The total compensation assessed by the Tribunal was reduced to Rs. 50,000, and the interest granted by the Tribunal was not interfered with.
Heard the parties and with their consent this appeal is disposed of at the stage of hearing under Order 41 Rule 11 of the Code of Civil Procedure.
2. One Raju Prasad, a 6 years old child died in a motor accident on 25.5.1995, when he was dashed by a car, bearing registration no. WNR-3651.
3. His parents filed Claim Case No. 24 of 1995, before the Motor Vehicles Accident Tribunal, Saran at Chapra, wherein by the impugned judgment and award dated 10.7.1997, a sum of Rs. 1,25,000/- has been directed to be paid as compensation by the Insurance Company.
4. While assessing compensation the Tribunal committed an error, when it took notional income of the deceased 6 year's old child and also used the multiplier etc.
5. It is well settled that in case of death of a child in a motor accident, compensation is to be awarded on a lumpsum basis, considering the status of the parties, financial condition of the family of which the deceased belonged to, the future expectancy of the deceased and loss of love and affection of the parents.
6. The child was a non-earning member. Looking to the intention of the Parliament in the Motor Vehicles Act, 1988, I find that for the death of a person in case of "no fault liability" the compensation should not be less than Rs. 50,000/-. It can be taken as good guidance to determine the question of compensation in case of death of a child.
7. Considering all aspects in the present case, in my opinion, a sum of Rs. 50,000/- would be the proper assessment off compensation on lump sum basis to be paid to the claimants-respondents 1 and 2. Hence the impugned judgment and award is modified and quantum of total compensation assessed by the Tribunal to the tune of Rs. 1,25,000/- is reduced to 50,000/- only. I do not find any reason to interfere with the interest granted by the Tribunal.
8. It is stated that a sum of Rs. 50,000/- by way of interim compensation has already been paid to the claimants. Such payment shall be considered while calculating interest on the awarded amount. This appeal is, accordingly, disposed of.
9. The statutory amount deposited in this court for the purpose of this appeal vide Challan No. 219 dated 19.11.1997 is permitted to be withdrawn by the appellant-Insurance Company on proper verification and in accordance with law.
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