Compensation in Road Accident Cases Involving Students to Be Calculated by Treating Them as Unskilled Workers, Rules High Court

In a significant judgment concerning compensation in motor accident cases, the High Court has held that a deceased student cannot be presumed to have had no income merely because he was studying at the time of the accident. The Court directed that, in such cases, compensation should be assessed by treating the deceased as an unskilled worker and calculating notional income accordingly.

 

The ruling came while hearing a petition filed by the family members of a student who lost his life in a road accident. The Bench observed that it would be incorrect to assume that a student was not earning or had no potential to earn solely because he was pursuing education. The Court emphasized that compensation under motor accident claims must be determined on a realistic and just basis, taking into account the probable earning capacity of the deceased.

 

The matter arose from a decision of the Motor Accident Claims Tribunal in Bulandshahr, which had assessed the deceased student’s notional annual income at ₹15,000 and awarded compensation on that basis. The High Court found this assessment to be grossly inadequate and inconsistent with prevailing wage standards.

 

The accident in question occurred on June 10, 2014, resulting in the death of a Class 12 student. Aggrieved by the quantum of compensation, the family approached the High Court seeking enhancement of the award.

 

The Court held that in such circumstances, the deceased should be treated as an unskilled worker and compensation should be calculated on the basis of the minimum wages prevailing in the state at the relevant time. It noted that the minimum wage for unskilled workers during that period was ₹6,362 per month. Accordingly, the Court directed that compensation be recalculated on this basis.

 

Taking all relevant factors into account, the High Court enhanced the compensation amount to ₹16,04,092. The judgment underscores the principle that compensation in accident claims must be fair, reasonable, and reflective of the deceased’s future earning potential, even where the victim was a student at the time of the incident.