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Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

11Sep

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Supreme Court

Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

The Supreme Court clarified that in claims under Section 166 of the MV Act, a notional income for a deceased child need not be limited to the figures in Schedule II (for Section 163-A claims). It reinstated the Tribunal's calculation, confirming no deduction for personal expenses is required in such cases. Facts Of The Case: The case originated from a motor accident involving a 10-year-old boy who was fatally struck by a bus owned by the Tamil Nadu State Transport Corporation while he was cycling to school. The parents of the deceased child filed a claim petition before the Motor Accidents Claims Tribunal. The Tribunal, acknowledging the undisputed negligence of the bus driver, awarded a total compensation of ₹8,55,000. This calculation was based on attributing a notional monthly...

Supreme Court Clarifies Compensation Rules Under MV Act: Insurer Liable Despite Negligence Claims

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, proof of negligence is not required for claiming compensation, as the provision operates on a structured formula basis. The Court emphasized that compensation must be computed as per the Second Schedule of the Act, excluding non-scheduled heads like loss of love and affection. It ruled that the deceased, being a third party to the offending vehicle, entitled the claimants to compensation, payable jointly and severally by the insurer of the offending vehicle. The judgment clarified that Section 163A has an overriding effect over other provisions of the Act, ensuring expedited compensation without fault liability adjudication. Facts Of The Case: On the night of November 15, 2006, Surender Singh was driving a tr...

Supreme Court Clarifies Dependency Rights in Accident Claims: Key Takeaways on Legal Heirs & Dependency

The Supreme Court upheld the High Court's decision denying enhanced compensation to the married daughter (Appellant No. 1) under the Motor Vehicles Act, 1988, as she failed to prove financial dependency on the deceased. However, it reversed the dismissal of the mother’s (Appellant No. 2) claim, awarding her ₹19.22 lakhs, recognizing her dependency and applying principles from Pranay Sethi and Sarla Verma for just compensation. The ruling clarified that legal heirs must establish dependency for loss-of-income claims, except under Section 140’s no-fault liability. Facts Of The Case: On January 26, 2008, Smt. Paras Sharma died in a road accident when a Rajasthan Roadways bus, negligently taking a sudden right turn, crushed her two-wheeler. Her married daughter (Appellant No. 1) and elderly ...