In the Realm of Tragedy, No Money Can Compensate the Loss of a Child: High Court Upholds ₹8 Lakh Compensation for Deceased Minor

In a poignant judgment, the Punjab and Haryana High Court has dismissed an appeal by United India Insurance Company Limited against the award of ₹8,00,000/- compensation for the death of a minor in a tragic road accident. The court, presided over by Hon’ble Mrs. Justice Ritu Tagore, delivered a significant verdict, affirming the notional income of the deceased minor at ₹50,000/- per annum, while underscoring the inexpressible loss of a child.

The pivotal legal issue revolved around the appropriate assessment of notional income and compensation for the death of Manvi, a 1.5-year-old child, killed in a road mishap due to the rash and negligent driving of the respondent. The tribunal had previously awarded compensation considering a notional income of ₹50,000/- per annum for the deceased, employing a multiplier of 15. The appellant, an insurance company, sought a reduction in the compensation amount, proposing a lower notional income of ₹25,000/-.

Manvi, while playing in the street, was tragically crushed under a vehicle, driven by the respondent in a reckless manner, leading to her untimely demise. The father of the deceased filed an FIR under Sections 279 and 304-A of the IPC. The insurance company contested the award, alleging policy violation and disputing the notional income assessed for the minor.

The court meticulously dissected the arguments, citing precedents such as Meena Devi vs. Nunu Chand Mahto and Kishan Gopal vs. Lala, to affirm the tribunal’s decision. The judgment poignantly highlighted:

The Incalculable Loss: Justice Tagore observed, “Losing a child in an accident is an unfathomable tragedy for parents,” emphasizing the immeasurable emotional impact and the irreversible void left by such a loss.

Assessment of Notional Income: Considering the socio-economic background of the claimants and the inflationary trends, the Tribunal’s assessment of ₹50,000/- as notional income was deemed appropriate.

Compensation as Solace: The compensation was recognized as a means to provide solace, albeit limited, for the lost potential happiness and support the child would have offered in the future.

The High Court, hence, dismissed the appeal, upholding the Tribunal’s assessment and award of compensation. The court concluded that the quantum of compensation granted was just and appropriate under the tragic circumstances.

Date of Decision: April 3, 2024

United India Insurance Company Limited vs Parmod Saini and Others