The Supreme Court has delivered a landmark judgment in a road accident claim case from Madhya Pradesh. Compensation for a child's death or permanent disability in an accident will now be calculated based on the minimum wages of a skilled worker. The insurance company will be held responsible.
New Delhi: The Supreme Court has delivered a significant judgment in a road accident claim case from Madhya Pradesh. The court has clarified that if a child dies or suffers permanent disability due to an accident, the compensation will be calculated based on the minimum wages of a skilled worker. Previously, compensation in such cases was determined based on "notional income," which was currently set at Rs 30,000 per year.
In its order, the Supreme Court stated that the minimum wages of a skilled worker in the state will now be considered as the child's notional income. Currently, the minimum wages for a skilled worker in Madhya Pradesh are Rs 14,844 per month, which equates to Rs 495 per day.
Responsibility to Present Documents
The Supreme Court has also directed that the claimants seeking compensation will have to present proof of minimum wages before the tribunal. If the claimant is unable to do so, the responsibility for monitoring this will fall on the insurance company. The court has also ordered that a copy of the judgment be sent to all Motor Accident Claims Tribunals to ensure compliance with this decision across the country.
Full Details of the Incident
This case dates back to October 14, 2012. Hitesh Patel, an eight-year-old resident of Indore, was standing on the road with his father when a vehicle hit him. Hitesh was severely injured in the accident and suffered permanent disability.
Hitesh's parents filed a claim with the Motor Accident Claims Tribunal seeking Rs 10 lakh in compensation. The tribunal determined that Hitesh had suffered 30 percent disability and ordered the insurance company to pay Rs 3,90,000 as compensation.
Role of the High Court
This decision was challenged in the High Court. The High Court observed that Hitesh was only eight years old. Based on this, the tribunal's decision was modified, and the compensation amount was increased to Rs 8,65,000.
Supreme Court Provides Final Relief
Dissatisfied with this verdict, the case reached the Supreme Court. In its landmark judgment on September 1, 2025, the Supreme Court accepted the case and set the compensation amount at Rs 35,90,000. This Supreme Court decision will have an impact on all pending motor accident claim cases across the country.
Significance of the Verdict
This Supreme Court decision will serve as a protection shield for children. Now, in cases of a child's disability or death due to an accident, fair compensation from insurance companies will be ensured. This judgment also clarifies that compensation will not be calculated solely on the basis of notional or minimum amounts, but the wages of a skilled worker in the state will be the benchmark. This will ensure that parents of children receive fair and just compensation after an accident.
