MASTER AYUSH versus THE BRANCH MANAGER, RELIANCE GENERAL INSURANCE CO. LTD. & ANR.

MASTER AYUSH versus THE BRANCH MANAGER, RELIANCE GENERAL INSURANCE CO. LTD. & ANR.

The appropriate method to assess loss of future earnings for the five-year-old paraplegic appellant is to use the State's minimum wage for a skilled workman as on the date of accident (rounded to Rs.3700 per month) as notional income, add 40% for future prospects (making Rs.5180 per month), apply multiplier 18 to arrive at loss of future earnings of Rs.11,18,880; further, award lump sums for past medical expenses (Rs.5,74,000), future medical devices (Rs.10,00,000 for two devices), pain and suffering and loss of amenities (Rs.10,00,000), loss of marriage prospects (Rs.3,00,000), attendant charges for life (Rs.8,00,000) and conveyance (Rs.2,00,000), totalling Rs.4,993,000, with interest at...

Parties
Appellant: Master Ayush; Respondent: The Branch Manager, Reliance General Insurance Co. Ltd.
Jurisdiction
India
Judgment Date
29 March 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeals allowed; High Court order modified and compensation enhanced
Legal Topics
Just Compensation, Loss of Future Earnings, Minimum Wages as Notional Income, Future Prospects, Attendant Charges, Future Medical Expenses, Conveyance Expenses, Loss of Marriage Prospects
Motor Vehicles Compensation Personal Injury Just Compensation Loss of Future Earnings Minimum Wages as Notional Income Future Prospects Attendant Charges +3 more

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Parties

Master Ayush

Appellant

The Branch Manager, Reliance General Insurance Co. Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Appropriate basis for notional income of a minor victim for loss of future earnings
  2. 2 Applicability of State minimum wages notification to assess notional income
  3. 3 Appropriate percentage addition for future prospects

Ratio Decidendi

The appropriate method to assess loss of future earnings for the five-year-old paraplegic appellant is to use the State's minimum wage for a skilled workman as on the date of accident (rounded to Rs.3700 per month) as notional income, add 40% for future prospects (making Rs.5180 per month), apply multiplier 18 to arrive at loss of future earnings of Rs.11,18,880; further, award lump sums for past medical expenses (Rs.5,74,000), future medical devices (Rs.10,00,000 for two devices), pain and suffering and loss of amenities (Rs.10,00,000), loss of marriage prospects (Rs.3,00,000), attendant charges for life (Rs.8,00,000) and conveyance (Rs.2,00,000), totalling Rs.4,993,000, with interest at...

Court Disposition

Appeals allowed; High Court order modified and compensation enhanced

Orders

  • Total compensation fixed at INR 4,993,000
  • Loss of future earnings (permanent disability for life): INR 1,118,880