Authority: High Court of Punjab and Haryana at Chandigarh

Order Date: 16 July 2026

Case Overview

  • Parties: Appellant – Vabhav (minor) through father Surender; Respondents – Surender Singh (driver), owner of the school bus, and an unnamed Insurance Company.
  • Accident Details: On 06‑11‑2019 at ~4:00 p.m., the four‑year‑old child was struck by a school bus owned by Respondent No.1, fell beneath the front wheel, and sustained severe injuries to both legs. The bus fled the scene.
  • Medical Journey: Initial treatment at Birendra Hospital, Rewari; later admitted to Medanta Hospital, Gurugram on the day of accident; subsequently shifted to Pt. B.D. Sharma PGIMS, Rohtak for multiple surgeries.
  • Legal Proceedings: FIR No.303 dated 09‑11‑2019 (Sections 279, 337, 338 IPC) lodged at Salhawas Police Station. Claim filed under Section 166 of the Motor Vehicles Act for compensation from driver, owner, and insurer.
  • Tribunal Award: Motor Accident Claims Tribunal, Jhajjar awarded ₹18,63,379 (plus interest) on 18‑07‑2023, holding respondents jointly and severally liable.
  • Grounds of Appeal: Appellant contested the functional disability assessment (50% by Tribunal) despite a Medical Board certificate of 100% permanent physical disability, and the use of unskilled‑worker minimum wages for loss of future earning capacity.

Final Outcome

  • The Court affirmed liability of all respondents and enhanced the compensation.
  • Functional Disability: Revised to 75% (up from 50%).
  • Wage Basis: Adopted skilled‑worker minimum wage of ₹10,969 per month (rounded to ₹10,970).
  • Future Earning Capacity Calculation:
  • Monthly notional income = ₹10,970 + 40% prospect factor = ₹15,358.
  • Annual income = ₹1,84,296.
  • Multiplier = 18 → Total future income = ₹33,17,328.
  • Applying 75% functional disability → ₹24,87,996.
  • Revised Compensation Breakdown:

| Head | Amount (₹) |

| Medical expenses | 1,78,283 |

| Loss of future earning capacity (75%) | 24,87,996 |

| Pain, shock and suffering | 8,00,000 |

| Loss of amenities and enjoyment of life | 5,00,000 |

| Loss of marriage prospects | 5,00,000 |

| Future medical treatment, rehabilitation and physiotherapy | 5,00,000 |

| Artificial/prosthetic limbs and future replacements | 10,00,000 |

| Future attendant charges | 5,00,000 |

| Special diet and conveyance | 1,00,000 |

| Total | ₹57,66,279 |

  • The Court further stated that the total enhanced compensation is ₹57,95,611, representing an increase of ₹39,03,900 over the Tribunal award (rounded enhancement amount ₹39,04,000). Interest at 7.5% per annum accrues from the filing date of the claim petition.
  • Payment Directions:

1. The Insurance Company must deposit the enhanced amount with the Tribunal within four weeks.

2. Upon deposit, 25% of the enhanced sum (plus proportionate interest) shall be released immediately to the natural guardian for medical, rehabilitation, education, and related expenses.

3. The remaining 75% shall be invested in interest‑bearing Fixed Deposit Receipts in a nationalised bank in the minor’s name, with staggered maturities extending until the claimant reaches majority and thereafter, to provide a regular fund for future rehabilitation, education, and medical needs.

4. Interest earned on these deposits shall be credited to a savings account operated by the guardian for the claimant’s welfare.

5. The Tribunal may permit premature withdrawal of any part of the deposits for genuine medical, rehabilitation, or educational necessities.

  • No order as to costs.

Topics: Compensation Law, Motor Accident Liability, Minor Disability