Synopsis

The claimants (parents) sought enhancement of compensation awarded for the death of their 12-year-old son in a motor vehicle accident. The insurance company sought reduction of the award. The High Court enhanced the compensation significantly, holding that: (i) for a minor child, the notional income must be assessed on the basis of minimum wages of a skilled worker as per the Karnataka State Legal Services Authority chart (Rs.12,500/- per month for 2018); (ii) future prospects of 40% must be added under Pranay Sethi; (iii) the multiplier applicable is 18; (iv) conventional heads (loss of consortium, loss of estate, funeral expenses) must be enhanced by 10% every three years; (v) the law enunciated by the Supreme Court applies to all pending matters irrespective of the stage; (vi) interest at 8% per annum was upheld.

1. Heading of the judgment

High court of karnataka at bengaluru

Miscellaneous first appeal no. 1342 of 2022 (mv-d) with miscellaneous first appeal no. 1911 of 2020 (mv-d)

Muttappa basavanthappa mudenur & anr. (appellants in mfa/1342/2022) vs. Naveen kumar r & ors. (respondents) and the branch manager, shriram general insurance co. ltd. (appellant in mfa/1911/2020)

Coram: hon’ble mr. justice jayant banerji and hon’ble ms. justice tara vitasta ganju

Core Law: Motor Vehicles Act, 1988 – Section 166 – Compensation for death of minor child – Assessment of notional income – Minimum wages of skilled worker – Future prospects – Multiplier – Rate of interest – Prospective application of law.

Court: High Court of Karnataka at Bengaluru
Coram: Hon’ble Mr. Justice Jayant Banerji and Hon’ble Ms. Justice Tara Vitasta Ganju (Division Bench)
Date of Judgment: June 3, 2026
Case Nos.: MFA No. 1342 of 2022 and MFA No. 1911 of 2020
Citation: 2026:KHC:25966-DB

2. Legal framework

Major laws and provisions involved:

• Motor Vehicles Act, 1988 – Section 166 (claim for compensation)

• Minimum Wages Act, 1948 – Notifications prescribing minimum wages

• Karnataka State Legal Services Authority – Notional Income Chart

Subject matter of the judgment:

Whether the compensation for the death of a minor child in a motor vehicle accident should be assessed on the basis of minimum wages of a skilled worker, with future prospects and multiplier, and whether the law as enunciated by the Supreme Court applies to pending matters irrespective of the stage.

Key legal principles applied:

• Notional income for minor children: For a minor child who suffers death or permanent disability in a motor vehicle accident, the child cannot be placed in the same category as a non-earning individual. The computation of compensation under the head of loss of income must be made by adopting, at the very least, the minimum wages payable to a skilled workman as notified for the relevant period in the concerned State. (Master Ayush v. Reliance General Insurance Co. Ltd.;

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