Should compensation for permanently disabled minors in motor accident claims include attendant charges, future medical costs and loss of marriage prospects alongside the multiplier method?

 

Summary

Category Data
Court Supreme Court of India
Case Number C.A. No.-006544-006544 – 2024
Diary Number 257/2022
Judge Name HON’BLE MR. JUSTICE N.V. ANJARIA
Bench
  • HON’BLE MR. JUSTICE ARAVIND KUMAR
  • HON’BLE MR. JUSTICE N.V. ANJARIA
Concurring Judges HON’BLE MR. JUSTICE ARAVIND KUMAR
Precedent Value Binding
Overrules / Affirms Affirms and clarifies existing precedents
Type of Law Motor Vehicles Act, 1988; Section 166
Questions of Law Should compensation for permanently disabled minors under Section 166 MVA include multiplier-based future earnings plus specific heads such as attendant charges, loss of marriage prospects, special diet and transport, pain and suffering and future medical expenses?
Ratio Decidendi The Court held that in Section 166 claims for permanently disabled minors the multiplier method per Pranay Sethi applies, using the minor’s monthly income with 40% future prospects and the appropriate multiplier. It recognised 77.1% disability based on medical certification. In addition to future earnings, heads such as attendant charges, loss of marriage prospects, special diet and transportation, pain and suffering, loss of amenities and future medical expenses must be included. The Court recalculated the compensation applying multiplier 15 to the adjusted income and disability percentage, fixed specific amounts for each head per precedents (Kajal, Sidram, K.S. Muralidhar), and modified the High Court’s award to a total of ₹15,13,337, awarding additional ₹7,64,454 at 8% interest.
Judgments Relied Upon
  • Master Mallikarjun v. Divisional Manager, National Ins. Co. Ltd. (2014) 14 SCC 396
  • Sona (minor) v. Manual C.M., Civil Appeal No. 002316 of 2025
  • National Ins. Co. Ltd v. Pranay Sethi & Ors. (2017) 16 SCC 680
  • Kajal v. Jagdish Chand (2020) 4 SCC 413
  • Sidram v. Divisional Manager, United India Ins. Ltd. (2023) 3 SCC 439
  • K.S. Muralidhar v. R. Subbulakshmi & Anr. (2024) SCC Online SC 3385
Logic / Jurisprudence / Authorities Relied Upon by the Court Applied multiplier method per Pranay Sethi for minors (multiplier 15); accepted medical board’s 77.1% disability certificate; added 40% future prospects; included heads for attendant charges, loss of marriage prospects, special diet and transport, pain and suffering, future medical expenses based on relevant precedents.
Facts as Summarised by the Court A 14-year-old student suffered injuries in a lorry-auto rickshaw collision on 19.04.2002 due to rash driving by the lorry driver; Tribunal awarded ₹1,73,000; Kerala HC enhanced by additional ₹5,75,883; appeal sought further enhancement.

Practical Impact

Category Impact
Binding On All subordinate courts and Motor Accident Claims Tribunals
Persuasive For High Courts
Overrules Impugned Kerala High Court judgment in MACA No. 89 of 2009
Follows
  • Pranay Sethi (2017) 16 SCC 680
  • Master Mallikarjun (2014) 14 SCC 396
  • Sona (minor) (2025)
  • Kajal (2020) 4 SCC 413
  • Sidram (2023) 3 SCC 439
  • K.S. Muralidhar (2024)

What’s New / What Lawyers Should Note

  • Affirms that minors’ future earnings should include 40% future prospects under Pranay Sethi.
  • Recognises attendant charges (₹40,000) as a distinct head of compensation.
  • Clarifies loss of marriage prospects (₹3,00,000) for permanently disabled minors per Kajal.
  • Adds special diet and transportation (₹40,000) based on Sidram.
  • Awards pain and suffering (₹3,00,000) following K.S. Muralidhar.
  • Confirms future medical expenses (₹50,000) beyond actual bills.
  • Demonstrates Court’s approach to aggregate specific heads for holistic compensation.

Summary of Legal Reasoning

  1. Noted High Court’s enhancement but identified scope for further enhancement per Sona (minor) (2025) precedent.
  2. Applied multiplier method under Section 166 MVA: monthly income ₹3,620 + 40% prospects = ₹60,816; ×15 (multiplier) = ₹9,12,240; ×77.1% (disability) = ₹7,03,337.04.
  3. Held actual medical bills insufficient; fixed ₹50,000 to cover miscellaneous and future expenses.
  4. Awarded attendant charges ₹40,000 for caregiving costs.
  5. Fixed loss of marriage prospects at ₹3,00,000 per Kajal.
  6. Granted special diet and transport ₹40,000 per Sidram.
  7. Granted pain and suffering ₹3,00,000 per K.S. Muralidhar.
  8. Confirmed loss of amenities ₹80,000 as per High Court.
  9. Aggregated total compensation ₹15,13,337.04, rounded to ₹15,13,337; directed insurer to pay additional ₹7,64,454 at 8% interest.

Arguments by the Parties

Petitioner (Injured Minor):

  • High Court’s award did not fully account for miscellaneous medical expenses and future treatment.
  • Additional heads such as attendant charges, loss of marriage prospects, special diet, pain and suffering and future medical costs warranted.

Factual Background

A 14-year-old student in 7th standard sustained injuries in an auto-rickshaw-lorry collision on 19.04.2002 due to the lorry driver’s rash driving. He was later certified with 77.1% permanent disability. The Motor Accident Claims Tribunal awarded ₹1,73,000; the Kerala High Court enhanced this by ₹5,75,883; the minor appealed for further enhancement.

Statutory Analysis

Section 166 of the Motor Vehicles Act, 1988 empowers tribunals to award compensation for injuries caused by motor vehicle accidents. The Court interpreted the application of the multiplier method (per Pranay Sethi), the inclusion of future prospects, and specific heads of damages without altering statutory provisions.

Alert Indicators

  • ✔ Precedent Followed

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