Supreme Court on Compensation for Death of Minor in Motor Accident.

Headnote:

The Supreme Court enhanced compensation payable to parents for the death of their 14-year-old son in a motor accident, holding that notional income should be determined on the basis of minimum wages with future prospects, and that the appropriate multiplier in such cases is 15. The Court clarified that principles applicable to cases of permanent disability of minors cannot be mechanically applied to cases involving death of a child.

Background:

• A 14-year-old schoolboy died after being hit by a truck driven rashly and negligently while going to school with classmates.

• The Motor Accident Claims Tribunal awarded compensation of ₹1,29,500 with 6% interest.

• On appeal, the High Court enhanced compensation to ₹4,70,000 with 6% interest.

• The parents approached the Supreme Court seeking further enhancement, relying on evidence of earning potential of similarly placed children and seeking application of a higher multiplier.

Court’s Observations:

• Compensation claims for death of a child stand on a different footing from claims filed by a child suffering permanent disability.

• The judgment in Baby Sakshi Greola v. Manzoor Ahmad Simon (multiplier of 18) was distinguished as it related to permanent disability and not death.

• Minimum wages under the Minimum Wages Act, 1948 can be adopted as notional income for a deceased minor.

• As laid down in Reshma Kumari v. Madan Mohan, the appropriate multiplier in such cases is 15.

• Future prospects at the rate of 40% are applicable even in cases involving notional income.

• Parents are also entitled to compensation for pain and suffering where the child survives for some time after the accident.

Computation of Compensation

• Loss of dependency: ₹6,80,400

• Loss of estate: ₹15,000

• Loss of filial consortium: ₹80,000 (₹40,000 each)

• Medical expenses: ₹50,000

• Funeral expenses: ₹15,000

• Pain and suffering: ₹25,000

Total Compensation: ₹8,65,400

Final Directions

• The enhanced compensation shall be paid to the appellants after adjusting the amount already paid.

• Payment to be made within two months with interest at 7.5% per annum.

• The appeal was allowed with modification of the compensation amount.

Legal Provisions Discussed:

• Motor Vehicles Act, 1988 – Compensation for motor accident claims.

• Minimum Wages Act, 1948 – Determination of notional income.

• Judicial precedents: Reshma Kumari v. Madan Mohan; Baby Sakshi Greola v. Manzoor Ahmad Simon.

Citation: 2025 INSC 1429

Case: Devendra Kumar Tripathi & Ors. v. The Oriental Insurance Company Ltd. & Anr.

Court: Supreme Court of India

Coram: Justice Ahsanuddin Amanullah & Justice K. Vinod Chandran

Date of Decision: 15 December 2025

Civil Appeal: Arising out of SLP (C) No. 2195 of 2024