Karnataka High Court Enhances Compensation for Deceased Minor, Citing Minimum Wages Act
Bengaluru: The Karnataka High Court has awarded an enhanced compensation of Rs 22.5 lakh to the family of a deceased schoolgirl, emphasizing that her potential income should be calculated in accordance with the provisions of the Minimum Wages Act. The ruling came as the court partly allowed an appeal filed by Lt Col Rajinder Singh Shekhawat and his wife, Vanitha, parents of the deceased. Justice Umesh M. Adiga, presiding over the bench, referenced a Supreme Court ruling in the Hitesh Nagjibai Patel case, which established the principle of using minimum wages for calculating compensation in such instances.
The case stems from a tragic incident on November 10, 2018, when 15-year-old Diya Shekhawat, a Class X student at Poornaprajna Education Centre in Bhadravathi, died from injuries sustained in an accident. The school bus she was traveling in struck an electric pole near Southikere in the NR Pura taluk due to the driver's negligence.
Diya's parents sought Rs 78 lakh in compensation, arguing that they had lost their only daughter, who was a bright student with a promising future in sports. The Motor Accident Claims Tribunal at Shivamogga initially awarded them Rs 16.8 lakh in its order dated March 20, 2021. Dissatisfied with this amount, the parents, along with Sriram General Insurance Company, filed separate appeals before the High Court.
The insurance company argued that the compensation awarded by the tribunal was excessive, citing previous Supreme Court decisions where awards in similar cases involving minors ranged from Rs 3 lakh to Rs 5 lakh. Diya's parents, however, argued that the tribunal had failed to adequately consider her future prospects when computing the compensation.
Justice Adiga, after reviewing the case materials, pointed to the Supreme Court's directive that compensation should be calculated based on the prevailing minimum wages. The court directed the insurance company to pay an additional Rs 5.6 lakh, along with 6% interest, to the claimants, supplementing the compensation already awarded by the tribunal. Consequently, the appeal filed by the insurance company was dismissed.
This decision aligns with a growing legal trend emphasizing the need to consider the potential future earnings of minors when calculating compensation in accident cases. The Supreme Court has previously clarified that minors cannot be categorized as "non-earners" and that their income should be assessed based on the minimum wages for a skilled worker in the respective state. In a similar case, the Punjab and Haryana High Court enhanced compensation for a minor's death, also using the minimum wages act and the multiplier method.
Furthermore, the Supreme Court has directed that in cases where the income of the deceased is not properly established, the insurance company is obligated to provide the schedule of minimum wages applicable in the relevant state. This ruling aims to ensure fair compensation and prevent unnecessary delays and appeals in such cases. The judiciary's stance is that compensation for minors should not be symbolic but rather a structured assessment based on the wage of a skilled workman, reflecting a fair evaluation of the loss suffered.
