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In an important Judgment, the Allahabad High Court recently held that fixing notional income of Rs.15,000 per annum for family's non-earning members for awarding accidental death compensation is not just and reasonable.

A Division Bench of Justice Dr Kaushal Jayendra Thaker and Justice Ajai Tyagi was hearing an appeal filed by the parents of a 7-year-old deceased. The parents had preferred the appeal for enhancement of quantum against the order of Motor Accident Claims Tribunal whereby they had been awarded Rs.1,80,000 as compensation with interest at the rate of 7.5% per annum.

Taking Apex Court's ruling in Kurvan Ansari @ Kurvan Ali and another Vs. Shyam Kishore Murmu and another, 2021, the bench noted that the controversy regarding the death of a child has already been decided and the Apex court has settled the law. 

The bench held, "In this case, the Hon’ble Apex Court has stated that in spite of repeated directions, Scheduled-II of Motor Vehicles Act, 1988 is not yet amended. Therefore, fixing notional income of Rs.15,000/- per annum for non earning members is not just and reasonable."

Bench further added that referring to another Supreme court's judgment in Puttamma and others Vs. K.L. Narayana Reddy and another (2014) and Kishan Gopal and another v. Lala and others (2013), the highest court had took the notional income of the deceased at Rs.25,000/- per annum, hence we are of the considered view that notional income of the deceased must be assumed Rs.25,000/- per annum as he was non-earning member.

Accordingly, the Court enhanced the compensation to Rs. 4,70,000 with interest at the rate of 7.5% from the date of filing of the claim petition till the amount is deposited. Court directed the respondent-Insurance Company to deposite the amount within a period of 08 weeks from the date of the order. 

Matter in Brief

On March 18th, 2018 claimant Roop Lal was walking with his son and at that time, a truck, which was being driven very rashly and negligently by its driver, hit his son from behind due to which he fell on the road and front wheel of the truck ran over him. Lal’s son sustained fatal injuries and died on the spot. He was only a child of aged about 7 years. 

Thereafter, a Motor Accident Claim was filed, in which the Tribunal had awarded a sum of Rs.1,80,000 as compensation to the claimants with interest at the rate of 7.5% per annum. Feeling aggrieved, the father had moved to High Court in its appellate jurisdiction.

Case Title: Roop Lal and Anr v. Suresh Kumar Yadav and 2 Ors.