Motor Accident Compensation Cases: Supreme Court Rules Children Cannot Be Regarded as 'Non-Contributing'

Supreme Court Increases Compensation for Eight-Year-Old Motor Accident Victim

The Supreme Court of India has increased the compensation for Hitesh Patel, an eight-year-old boy who was injured in a motor accident in Gujarat's Banaskantha in 2012, from ₹3.9 lakh to a total of ₹35.9 lakh.

In September 2021, the Motor Accident Claims Tribunal (MACT) had awarded only ₹3.9 lakh to Hitesh. The family of Hitesh, represented by advocates Udian Sharma, Sahil Saraswat, Manav Mitra, Vishesh Sapra, and Harsha Sadhwani, filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking ₹10 lakh in compensation.

The Supreme Court's order, circulated to all High Courts and Motor Accident Claims Tribunals nationwide, holds that children injured in motor accidents cannot be treated as "non-earning individuals" when calculating compensation. This decision was based on the 2020 judgment in Kajal v. Jagdish Chand.

The Court fixed Hitesh's notional income at ₹6,836 per month, based on the minimum wages for skilled workers in Gujarat in 2012. The respondents, represented by advocates Awantika Manohar, Parul Dhurvey, and Aman Kumar Pandey, were criticised for failing to follow this binding precedent.

The Court also criticised both the Gujarat High Court and the MACT for their failure to apply the principles clarified in the Kajal v. Jagdish Chand judgment. The Supreme Court has issued directions to ensure that MACTs and High Courts apply minimum wage standards in such cases.

In addition to the compensation for pain and suffering, loss of marriage prospects, cost of an artificial limb, special diet and transport, medical and future expenses, loss of income during treatment, and loss of amenities, the Court ordered the respondents to deposit the enhanced compensation directly into Hitesh Patel's bank account by September 30.

The Court also directed that in cases where claimants cannot establish income proof, insurance companies must provide the relevant minimum wage data before tribunals. The Court expressed hope that its decision would help avoid similar errors in the future.

Hitesh Patel's case is not the first time the name has been associated with a legal battle. There are multiple individuals named Hitesh Patel, including a Dr. Hitesh Patel in the field of education, a director involved with Padmaadevi Sugars Ltd implicated in a financial fraud case, and a researcher in oncology chemistry at AstraZeneca in the UK.

The Supreme Court's decision is a significant step towards ensuring fair compensation for victims of motor accidents, particularly children. The Court's order serves as a reminder to MACTs and High Courts to adhere to binding precedent and apply minimum wage standards in such cases.