Allahabad High Court Revises Compensation to Rs 16 Lakh for Class 12 Accident Victim

Allahabad High Court Revises Compensation to Rs 16 Lakh for Class 12 Accident Victim

The Allahabad High Court has made a significant ruling by enhancing the compensation awarded to the family of a 22-year-old student who died in a road accident, revising the amount to over Rs 16 lakh. This decision came while hearing a plea against a tribunal order that initially granted only Rs 2.60 lakh.

Court Rejects Presumption of No Income for Student

Justice Sandeep Jain, presiding over the case, observed that it cannot be assumed a Class 12 student had "no income". The court noted that the victim was a labourer earning approximately Rs 9,000 per month, as evidenced by his mother's testimony. This finding challenged the Motor Accident Claims Tribunal's (MACT) assessment, which had calculated the victim's national income at a mere Rs 15,000 per annum.

Details of the Case and Enhanced Award

The accident occurred in 2014, involving a bus owned by the Uttar Pradesh State Road Transport Corporation (UPSRTC), resulting in the death of Ankit, a Class 12 student at the time. The MACT in Bulandshahar had passed the original award in April 2026, but the family appealed under Section 173 of the Motor Vehicles Act, 1988, seeking an enhancement due to inadequate income assessment and lack of future prospects consideration.

Key points from the court's ruling include:

• The tribunal erred by not awarding compensation based on minimum wages for an unskilled workman in Uttar Pradesh, which was Rs 6,362 per month at the time of the accident.
• Under Rule 220-A of the UP Motor Vehicle Rules, 1998, the claimants were entitled to a 50% increase for future prospects, which the tribunal had overlooked.
• The victim's family, including his mother, two unmarried brothers, and one unmarried sister, were wholly dependent on his income, as his father had predeceased him.

As a result, the court awarded a total compensation of Rs 16 lakh, along with 7% annual interest from the date of the claim petition filing until payment, to be indemnified by UPSRTC.

Implications of the Ruling

This judgment underscores the importance of fair compensation in accident cases, particularly for students who may have earning potential. It sets a precedent against presuming lack of income based solely on educational status, ensuring that victims' families receive adequate financial support.