Motor Accident Claim: Supreme Court Clarifies Compensation for Minors.


Supreme Court summarized a case of Thangavel & Others v/s The Managing Director, Tamil Nadu State Transport Corporation Limited where the parents of a 10-year-old boy who died in a motor vehicle accident appealed a reduction in their compensation. The boy was hit by a bus while cycling to school. The original tribunal awarded the family Rs. 8,55,000, calculating the boy's income at Rs. 5,000 per month and using a multiplier of 18. They also awarded amounts for love and affection, funeral expenses, transportation, and damages to clothes and the cycle.

 

 

The High Court, however, reduced the total compensation to Rs. 5,80,000. It adopted a lower income of Rs. 30,000 per year, as per Schedule II of the Motor Vehicles Act, which applies to "no-fault liability" claims, and a lower multiplier of 15 based on the mother's age. The High Court also reduced the funeral expenses and eliminated the compensation for transportation and damages to the boy's belongings.

The Supreme Court, finding the High Court's reasoning flawed, noted that Schedule II was not applicable in this case because it was a claim under Section 166, where negligence was proven. The Court upheld the tribunal's monthly income calculation of Rs. 5,000 for the child. It also determined that no deduction for personal expenses should be made in this case. The Court calculated a higher total compensation than the High Court, but since the parents had not appealed the amount awarded by the Tribunal, the Supreme Court restored the original tribunal's award of Rs. 8,55,000. The Court allowed the appeal and set aside the High Court's order.