The Supreme Court substantially enhanced the compensation payable to a child who had sustained 90% permanent disability in a road accident at Banaskantha, Gujarat, in 2012.A Bench of Justices Sanjay Karol and Prashant Kumar Mishra recalculated the award at ₹35,90,489 with 9% interest per annum, far exceeding the amounts earlier granted ₹3.9 lakh by the Motor Accident Claims Tribunal (2021) and ₹8.65 lakh by the Gujarat High Court (2024).
The appellant, injured at the age of 8, had suffered brain haemorrhage and amputation of his left leg after being hit by a rashly driven vehicle. The Court held that both the Tribunal and the High Court erred in treating him as a non-earning individual and in failing to award just compensation under the head of loss of future income. Referring to Kajal v. Jagdish Chand (2020) 4 SCC 413 and Baby Sakshi Greola v. Manzoor Ahmad Simon (2024) SCC Online SC 3692, the Bench reaffirmed that compensation for minors must be computed with reference to the minimum wages of a skilled worker in the State at the time of accident.Taking the notional monthly income at ₹6,836, adding 40% future prospects, and applying a multiplier of 18, the Court assessed the loss of future earnings at ₹18.60 lakh. Additional sums were awarded towards medical expenses, future medical care, special diet and transport, pain and suffering, loss of amenities, loss of marriage prospects, and the cost of an artificial limb.
The Court also issued a direction to all High Courts and Motor Accident Claims Tribunals that in cases where claimants cannot establish income, it shall be the duty of the insurance company to furnish minimum wage schedules notified by the government, so as to ensure just compensation and reduce avoidable appeals.The Bench directed that the compensation be directly deposited into the appellant’s bank account by 30 September 2025.
Appearances:
For The Petitioner : Adv. Sahil Saraswat, Adv.Manav Mitra, Adv. Vishesh Sapra, Adv.Harsha Sadhwani
For Respondent(s) : Adv. Awantika Manohar, AOR Parul Dhurvey, Adv. Aman Kr Pandey,
