The Karnataka High Court has awarded Rs 20 lakh in compensation to a couple from Udupi district whose only son died in a road accident in 2018. The court enhanced the amount from the Rs 7.87 lakh originally granted by the Motor Accidents Claims Tribunal at Karkala.
Details of the case
The couple, residents of Udupi, lost their 23-year-old son in a motorcycle accident on July 15, 2018. The deceased was a final-year engineering student at a private college in Mangaluru. He was returning home when his motorcycle collided with a truck near Karkala. The couple filed a claim petition before the tribunal, seeking compensation of Rs 25 lakh.
Original compensation and appeal
The tribunal, in its order dated March 2021, awarded Rs 7.87 lakh, calculating the son's notional income at Rs 10,000 per month and applying a multiplier of 18. Dissatisfied with the amount, the parents appealed to the Karnataka High Court, arguing that the tribunal had erred in assessing the son's future earning potential.
High Court's reasoning
Justice H.P. Sandesh, presiding over the appeal, noted that the deceased was a final-year engineering student with promising career prospects. The court observed that as per the Supreme Court's guidelines in Pranay Sethi case, the notional income should be considered at Rs 15,000 per month for a student with professional qualification. The court also applied a 40% addition for future prospects, bringing the monthly income to Rs 21,000. Using a multiplier of 18, the court calculated the loss of dependency at Rs 18,14,400. After adding Rs 70,000 for loss of estate and funeral expenses, the total compensation was fixed at Rs 20 lakh.
Impact of the judgment
The judgment underscores the principle that compensation for the death of a young professional or student must reflect their potential future earnings. The court directed the insurance company to deposit the enhanced amount within six weeks, with interest at 6% per annum from the date of the claim petition. The couple's advocate, M. Shankar, stated that the enhanced compensation would provide financial security to the aging parents, who had no other children.
