In Brief
A seven-year-old child was struck by a motorcycle and died. The Motor Accidents Claims Tribunal awarded his parents compensation based on a notional annual income of Rs.15,000/-, which had been fixed in 1994. The Supreme Court held that this outdated figure must be updated for inflation. The Court increased the notional income to Rs.25,000/- per annum and enhanced total compensation to Rs.4,70,000/-, including loss of dependency, filial consortium (Rs.40,000/- per parent), and funeral expenses, plus 6% interest. The Insurance Company must pay, but may recover from the vehicle owner since the driver lacked a valid licence.
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