Punjab and Haryana High Court Doubles Compensation to Rs 14 Lakh for Death of 7th Grade Student
The Punjab and Haryana High Court recently made a significant ruling by doubling the compensation awarded to the parents of a 14-year-old student who tragically lost his life in a road accident. The court enhanced the compensation from an initial Rs 6.40 lakh to Rs 14.18 lakh, a decision that underscores the importance of considering future prospects in such cases.
Appeal and Settlement Details
The case was brought before Justice Archana Puri, who heard an appeal filed by the child's parents seeking an enhancement of the compensation previously awarded by a tribunal. The parents had initially received Rs 6.90 lakh, but they argued for a higher amount based on their son's potential future earnings and prospects.
During the proceedings, it was revealed that the parents had agreed to an amicable settlement with the insurance company involved. This settlement was contingent on recalculating the compensation by considering the notional earnings of the minor as Rs 8,500 per month. Advocate Vani Singh, representing the parents, accepted this offer made by advocate Rahul Pathania on behalf of the insurance company.
Calculation of Enhanced Compensation
The court meticulously recalculated the compensation by taking into account several key factors:
- Notional Earnings: The victim's monthly earnings were estimated at Rs 8,500, leading to an annual income of Rs 1.02 lakh.
- Future Prospects: An additional 40% was added to account for the child's future prospects, amounting to Rs 40,800 annually.
- Multiplier Application: Given the victim's age, a multiplier of 18 was applied, which is standard in such cases to project future earnings over a lifetime.
As a result, the total compensation was computed to be Rs 14.18 lakh. Since the tribunal had already awarded Rs 6.90 lakh, the parents were entitled to an enhanced amount of Rs 7.28 lakh. The court directed the insurance company to pay this remaining sum within six weeks.
Interest and Penalties
To ensure timely payment, the court stipulated that the parents would receive interest at a rate of 6% per annum on the enhanced amount from the date the appeal was filed. Furthermore, if the insurance company fails to make the payment within the specified period, it will be liable to pay a penal interest of 8% per annum until the amount is fully realized.
Background of the Case
The victim was a 14-year-old student in the seventh standard at the time of his death. Initially, the tribunal had considered his notional earnings as Rs 40,000 annually and applied a multiplier of 16, awarding Rs 6.40 lakh in compensation. Additionally, Rs 50,000 was granted for loss of love and affection, funeral expenses, and last rites.
Advocate Singh highlighted that the child was good at sports, although no evidence was provided to the tribunal regarding this aspect. This case sets a precedent for how courts evaluate compensation in accidents involving minors, emphasizing the need to account for their untapped potential and future earning capacity.
This ruling by the Punjab and Haryana High Court not only provides justice to the grieving parents but also reinforces the legal framework for calculating compensation in tragic incidents involving young victims. It serves as a reminder of the judiciary's role in ensuring fair and adequate redressal in motor accident claims.
