United India Insurance Co. Ltd. - Appellant Versus Shri Moti Lal, S/o. Shri Teja Wageriya & Ors. - Respondents

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 — Compensation — Enhancement — Cross-objection/Appeal — Court's Duty.

Motor Vehicles Act, 1988 — Compensation — Child Death — Notional Income — Multiplier.

Motor Vehicles Act, 1988 — Compensation — Child Death — Conventional Heads — Two Claimants.

Ratio decidendi

• In motor accident claim cases, the Court is duty-bound to award just compensation to the claimants, even in the absence of a cross-objection or appeal filed by them, considering the beneficial nature of the Motor Vehicles Act, 1988.
• In cases involving the death of an 11-year-old child in a motor accident, the notional income of the deceased child should be assessed at Rs.30,000/- per annum, and a multiplier of 15 should be applied for calculating compensation.
• For the death of a child in a motor accident, where there are two claimants (parents), an amount of Rs.1,15,000/- is to be awarded towards conventional heads of compensation.

Important points

• Appeal by the Insurance Company challenging the compensation award is disposed of.
• The impugned award is modified, enhancing the compensation by Rs.1,40,000/-.
• Claimants are entitled to enhanced compensation of Rs.1,40,000/- along with 8% interest from the date of filing the claim petition.
• Any amount of compensation already disbursed to the claimants shall be adjusted accordingly.

Keywords