High Court Of Calcutta
PRABIR KUMAR SAMANTA, ANIRUDDHA BOSE
SUNITI MONDAL - Appellant
Versus
NEW INDIA ASSURANCE CO.LTD. - Respondent
F. M. A. 665 Of 2003
Decided On : 07/15/2004
MOTOR ACCIDENT CLAIM - SECTION 166 OF THE MOTOR VEHICLES ACT, 1988 - Determination of Compensation for Death of Minor with No Earning Capacity - Application of Structured Formula and Notional Income - Minimum Compensation of Rs. 1,50,000.
Fact of the Case:
A four-year-old child was killed in a road accident involving a rashly driven vehicle. The mother of the deceased filed a claim for compensation under Section 166 of the Motor Vehicles Act, 1988.
Finding of the Court:
The court found that the offending vehicle was involved in the accident and that the driver was negligent. The court also noted that the victim was a minor with no earning capacity and that the mother had suffered tremendous mental shock and agony due to the loss of her child.
Issues: 1. Whether the structured formula and notional income should be applied to determine compensation for the death of a minor with no earning capacity. 2. What should be the minimum amount of compensation in such cases.
Ratio Decidendi: 1. The court held that in cases of death of minors below the age of 15 years with no possibility of earning, compensation should be determined on the basis of a structured formula and notional income as provided in the Second Schedule to the Motor Vehicles Act, 1988. 2. The court further held that in such cases, a lump sum compensation should not be less than Rs. 1,50,000, considering factors such as loss of dependency, support in old age, loss of association, and mental pain and agony.
Final Decision: The court allowed the appeal and modified the award, directing the insurer to pay a balance sum of Rs. 1,00,000 along with interest at 9% per annum from the date of filing of the application till payment.
( 1 ) AN unfortunate mother of the victim is the appellant in this miscellaneous appeal which arises out of the judgment and order dated 18. 4. 2002 passed in motor accidents claim case thereby dismissing the petition under section 166 of the Motor Vehicles Act, 1988.
( 2 ) THE facts are that on 6. 11. 2000 at about 5 p. m. on G. T. Road the deceased victim who was aged about only four years was standing by the right side of the road. The offending vehicle bearing No. WB 41-A 1978, which was proceeding towards simlagarh from Pandua in a high speed and being driven negligently by its driver hit the victim who was brought dead to the hospital.
( 3 ) THE involvement of the offending vehicle in the said accident and rash and negligent driving of the said offending vehicle by its driver have been proved in evidence by an independent witness, namely, PW 2, who was present at the spot of the accident. Such finding of rash and negligent driving of the offending vehicle by its driver has also not been questioned in this appeal by the insurer.
( 4 ) THE claimant mother has already received a sum of Rs. 50,000 under no fault liability on an application under section 140 of the said Act. The present application under section 166 of the said act has been dismissed only on the ground that the victim was aged about four years only and, therefore, the claimant mother has not suffered any loss of dependency because of such sad demise of her son save and except tremendous mental shock and agony inasmuch as the victim had no possibility of earning soon thereafter had he been alive.
( 5 ) ACCORDINGLY, a question has cropped up in this case for determination as to what should be the just compensation in case of a death of a minor who had no present income and had no possibility-of earning by him within a reasonable period of time, had he been alive.
( 6 ) WE are not required to labour much to find out an answer to this question as the division Bench of this court in a decision in Fatama Matul Bibi v. Oriental Insurance co. Ltd. , 2003 ACJ 365 (Calcutta), after taking into consideration large number of decisions on the point has decided by holding that in case of a victim who is a minor having no possibility of earning at the relevant time, compensation should be determined on the footing of a non-earning person having the notional income as provided in the Second Schedule to the said act and by following the structured formula as framed therein. In particular such determination should be made by applying the multiplier of 15 as provided therein to the notional income of Rs. 15,000 per annum wherever the victim is a child below 15 years of age. Although there are other decisions of different High Courts as cited on behalf of the insurer respondent which did not uniformly determine the quantum of compensation by applying the multiplier of 15 in each case of death of a minor below the age of fifteen years on the notional income of Rs. 15,000 per annum but we are inclined to follow the decision of the Division Bench of our High Court as cited above.
( 7 ) IN this regard, we may further add that unless there are special and some other circumstances which do not reasonably require determination of compensation on such basis, in all cases of death of minors below the age of 15 years having no possibility of earning at the relevant point of time or soon thereafter, there should be determination of compensation on such structured formula basis on the notional income of Rs. 15,000 per annum. We are further of the view that in all such cases a lump sum compensation should under no circumstances be less than a sum of rs. 1,50,000. Because such compensation should be granted not purely upon consideration of the factor of loss of dependency, but at the same time upon consideration of various other factors. It is well-known that even earning parents are also entitled to a compensation in case of death of their child in a motor accident. Such c
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