Punjab & Haryana HC Enhances Compensation for 4-Year-Old Victim with 100% Disability

In a robust affirmation of the rights of child accident victims, the Punjab and Haryana High Court has nearly tripled the compensation for a minor suffering 100% permanent physical disability, ruling that functional disability must be assessed through the lens of future employability rather than mere physical impairment. The judgment reinforces the principle that for child victims, notional income should be pegged to the wages of a skilled worker to account for the loss of a lifetime of potential.

Justice Deepak Gupta presided over the appeal seeking enhancement of an award passed by the Motor Accident Claims Tribunal, Jhajjar. The case involved a four-year-old child who sustained extensive crush injuries to both legs after being run over by a school bus in 2019, leading to a permanent restriction in pelvic joint mobility and locomotion.

Assessment of Functional vs. Physical Disability

The Court scrutinized the Tribunal’s decision to limit the functional disability to 50% despite a medical certificate documenting 100% physical disability. The Court emphasized that for a toddler, the impact of such catastrophic injuries must be evaluated based on the narrowing of all future employment opportunities.

The Court, in its reasoning, observed: "The distinction between physical disability and functional disability is well settled by the Supreme Court in Raj Kumar v. Ajay Kumar ( "(2011) 1 SCC 343": 2010 CaseBase(SC) 368). The Court held that while medical disability represents the physical impairment assessed by medical experts, the functional disability is required to be assessed by the Court keeping in view the impact of such disability upon the earning capacity of the injured. In the case of an adult already pursuing a particular vocation, the Court may assess the extent to which the physical disability affects that vocation. However, where the victim is a child of merely four years, no such exercise is possible. The Court is required to evaluate the disability from the standpoint of his future employability in life."

While noting that the child's upper limbs and cognitive faculties were intact, the Court held that the 50% assessment was on the lower side and increased it to 75% for calculating the loss of future earning capacity.

Application of Skilled Worker Wage for Minors

Addressing the computation of notional income, the Court corrected the Tribunal's reliance on unskilled worker wages. Invoking the precedent set in Kajal v. Jagdish Chand ( "(2020) 4 SCC 413": 2020 CaseBase(SC) 1600), the Bench held that for permanently disabled minors, the minimum wages of a skilled worker prevailing at the time of the accident must be the benchmark. Consequently, the monthly income was revised from the unskilled rate to ₹10,970/-, with an additional 40% for future prospects.

Directions Issued to the Insurance Company and Tribunal

The Court has the following directions:

"The enhanced compensation, along with accrued interest, shall be deposited by respondent No.3-insurance company with the Tribunal within a period of four weeks from today. Upon deposit, 25% of the enhanced amount, together with proportionate interest, shall be released to the natural guardian of the minor claimant for meeting his immediate requirements relating to medical treatment, rehabilitation, education and allied expenses. The remaining 75% of the enhanced amount shall be invested by the Tribunal in interest-bearing Fixed Deposit Receipts in a nationalised bank in the name of the minor claimant in a phased manner, with staggered maturities extending till he attains the age of majority and thereafter for suitable periods, so as to ensure a regular source of funds for his future rehabilitation, higher education, replacement of assistive devices/prosthetic appliances (if required), and other medical needs."

Key Takeaways:

Child Functional Disability Benchmarks

Functional disability for minors must be assessed based on the lifelong narrowing of employment horizons, not just physical limitations.

Skilled Wage Notionality

Courts must use minimum wages of skilled workers as the base for calculating future loss of earnings for permanently disabled children.

Staggered Maturity for Major Awards

Large compensation amounts for minors should be placed in phased fixed deposits to ensure financial security through adulthood and for future medical exigencies.

Ratio Decidendi:

In cases involving permanently disabled minor children, the functional disability must be assessed by evaluating the impact on the victim's future employability and life-long locomotion. Furthermore, the notional income for such minors for calculating the loss of future earning capacity must be based on the prevailing minimum wages for a skilled worker, not an unskilled worker, supplemented by future prospects and an appropriate multiplier.

Background:

The appellant, Vabhav, was four years old when he was struck from behind by a rashly driven school bus on November 6, 2019. The bus ran over both his legs, necessitating multiple surgeries and resulting in 100% permanent physical disability. A claim was filed under Section 166 of the Motor Vehicles Act against the driver, owner, and insurer (Respondent No. 3). Criminal proceedings were also initiated under Sections 279, 337, and 338 of the IPC. The Tribunal initially awarded ₹18,63,379/-. The appellant challenged this in the High Court, arguing the assessment was insufficient. The High Court, after reassessing the heads of medical expenses, future medical needs, and earning capacity, enhanced the total compensation to ₹57,95,611/- with 7.5% interest.

Case Details:
Case No.: FAO-5412-2023
Case Title: Vabhav (minor) through his father Surender Vs. Surender Singh and others
Appearances:
For the Petitioner(s): Mr. Amandeep Singh, Advocate, for Mr. Chanderhas Yadav, Advocate
For the Respondent(s): Mr. Sanjeev Kodan, Advocate, for respondent No.3-Insurance Company.

Source: 2026 CaseBase(PNH) 169