Summary
The Court enhanced compensation for the death of a seven-year-old child in a 2004 motor accident by assessing notional annual income at Rs.25,000 rather than mechanically applying Rs.15,000. Inflation, currency depreciation and living costs justified the assessment. With multiplier fifteen, filial consortium for both parents and funeral expenses, compensation became Rs.4,70,000 with six per cent interest from the claim date. The insurer remained liable to pay first, with recovery against the unlicensed driver’s vehicle owner left open.
Issues
- Whether the old notional-income figure yielded just compensation for the non-earning child on these facts.
- What enhanced compensation and payment arrangement should follow.
Held
- The precedents concerning non-earning children required attention to inflation and changing living costs. In the circumstances of this 2004 accident, the Court assessed annual notional income at Rs.25,000 and applied multiplier fifteen, giving Rs.3,75,000 dependency loss. (¶¶ 11, 12, 13, 14, 15, 16)
- The parents were also awarded Rs.40,000 each for filial consortium and Rs.15,000 funeral expenses, bringing the total to Rs.4,70,000. Interest ran at six per cent annually from the claim-petition date until realization, with apportionment as directed by the Tribunal. (¶¶ 16, 17)
- The insurer was directed to pay the compensation, while remaining free to pursue appropriate proceedings to recover it from the motorcycle owner because the driver lacked a valid licence on the accident date. (¶ 17)
Result
Appeal partly allowed. Total compensation fixed at Rs.4,70,000 with 6% interest from the claim-petition date to realization, payable by the insurer with recovery liberty against the owner; no costs.