Supreme Court :- Minor can’t be a No income person for the purpose of Compensation
Case Title
Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari & Anr.
Civil Appeal No. 10278 of 2025 (Arising out of SLP (C) No. 14444/2025)
Bench: Justice Sanjay Karol and Justice Prashant Kumar Mishra
Date of Judgment: 8 August 2025
Supreme Court’s Landmark Ruling
The Supreme Court recently increased the compensation awarded to a minor victim of a road accident from ₹8.65 lakh to ₹35.90 lakh, setting aside the Gujarat High Court’s award. The Court clarified that a minor cannot be treated as a non-earning individual for calculating loss of income. Instead, the minimum wage for a skilled worker notified in the concerned State must be adopted.
The bench observed:
“It is now a well-entrenched and consistently reiterated principle of law that a minor child who suffers death or permanent disability in a motor vehicle accident, cannot be placed in the same category as a non-earning individual for the purposes of assessing the amount of compensation… In such a case, the computation of compensation under the head of loss of income ought to be made by adopting, at the very least, the minimum wages payable to a skilled workman as notified for the relevant period in the respective State.”
Key Directions to Insurance Companies and Tribunals
The Court issued significant directions to ensure fair assessment of claims:
Where the income of the claimant/deceased is not proved, the insurance company must furnish the applicable minimum wage schedule notified by the Government.
Registrars of all High Courts have been directed to circulate this order to every Motor Accident Claims Tribunal (MACT) in their respective States.
The Court specifically mandated:
“In cases where the claimant has failed to furnish appropriate details of income or adequate proof thereof, it shall be the responsibility and obligation of the contesting party, more particularly the insurance company, to furnish before the Tribunal the applicable minimum wage as duly issued by the concerned government.”
Background of the Case
On 14 October 2012, eight-year-old Hitesh Nagjibhai Patel suffered grievous injuries in Gujarat after being hit by a rashly driven vehicle. The accident caused brain hemorrhage and amputation of his left leg, leaving him with 90% permanent functional disability.
MACT (2021): Awarded ₹3,90,000, treating the child as a non-earning person.
High Court of Gujarat (2024): Enhanced the compensation to ₹8,65,000 but still ignored proper computation of income.
Supreme Court (2025): Set aside both and recalculated compensation as per established legal principles.
Reliance on Precedents
The Court referred to earlier rulings, particularly:
Baby Sakshi Greola v. Manzoor Ahmad Simon (2024) – where compensation to a minor victim was based on skilled worker minimum wages.
Kajal v. Jagdish Chand (2020) and Pranay Sethi (2017) – which laid down principles of future prospects and income assessment.
Computation of Compensation by Supreme Court
The Court determined the notional monthly income of the minor as ₹6,836 (based on 2012 minimum wages in Gujarat), added 40% future prospects, applied a multiplier of 18, and considered 90% disability.
Final Award Break-up
Head of Compensation Amount (₹)
Loss of Future Earnings 18,60,489
Medical Expenses 30,000
Future Medical Expenses 50,000
Special Diet & Transport 1,00,000
Loss of Marriage Prospects 3,00,000
Loss of Income During Treatment 50,000
Pain & Suffering 5,00,000
Loss of Amenities 2,00,000
Cost of Artificial Limb 5,00,000
Total 35,90,489
Interest at 9% per annum was ordered from the date of filing of the claim petition.
Importance of the Judgment
Ensures just and fair compensation for child victims of road accidents.
Reinforces the principle that minimum wages for skilled workers should guide income assessment.
Places an onus on insurance companies to provide wage data, reducing prolonged litigation.
Directs circulation of this ruling to all MACTs nationwide for uniform application.
Conclusion
By enhancing the compensation from ₹3.9 lakh (MACT) and ₹8.65 lakh (High Court) to ₹35.9 lakh, the Supreme Court has delivered a transformative ruling in motor accident claims law. This judgment not only provides relief to the victim but also lays down a binding framework for future cases involving minors.
