Case: Kurvan Ansari alias Kurvan Ali &amp; Anr Vs. Shyam Kishore Murmu &amp; Anr

3. Necessary facts, in brief, for disposal of this Appeal are that on 06.09.2004, while the son of the appellants - claimants viz., Ibran Ali, a boy aged about 7 (seven) years studying in Class-II, was standing by the side of the road in front of his maternal grandparents house, a motorcycle has dashed him causing grievous injuries resulting in his death. The said vehicle was driven by one Mr.Sunil Gurum and owned by respondent No.1 and insured with respondent No.2.4. On account of the said accident which resulted the death of the child of the claimants, they filed a Claim Petition under Section 163-A of the Motor Vehicles Act, 1988 claiming compensation. Before the Motor Accidents Claims Tribunal, it was the case of the claimants that the accident has occurred due to rash and negligent driving of the driver of the offending motorcycle; the deceased boy was aged about 7 years at the time of accident and he was studying in Class-II. The Tribunal by appreciating oral and documentary evidence on record, has come to the conclusion that the accident has occurred due to rash and negligent driving of the motorcycles driver viz., Sunil Gurum. The Tribunal, considering notional income of the deceased at Rs.15,000/- per annum, by applying multiplier 15, awarded compensation of Rs.2,25,000/- with interest @6% per annum from the date of judgment. Since the driver of the offending motorcycle Mr.Sunil Gurum was not possessing valid driving licence at the time of accident, the Tribunal directed respondent No.2 -Insurance Company to pay the compensation to the claimants and recover the same from its owner.5. Pleading contributory negligence, the insurance company had preferred M.A. No.115 of 2011, for enhancement of compensation, the claimants have preferred M.A. No.66 of 2011, before the High Court of Jharkhand at Ranchi.6. By the impugned judgment, the High Court has dismissed the appeal preferred by the Insurance Company and partly allowed the appeal preferred by the claimants by awarding a further sum of Rs.15,000/- towards funeral expenses. Thus, it is held that the appellants are entitled to a sum of Rs.2,40,000/- towards compensation with interest as awarded by the Tribunal from the date of filing Claim Petition.

Reasoning:
12. In the judgment in the case of Puttamma & Ors. (2013) 15 SCC 45,  this Court has observed that the Central Government was bestowed with the duties to amend Schedule-II in view of Section 163-A(3) of the Motor Vehicles Act 1988, but it failed to do so. In view of the same, specific directions were issued to the Central Government to make appropriate amendments to Schedule-II keeping in mind the present cost of living. In the said judgment, till such amendments are made, directions were issued for award of compensation by fixing a sum of Rs.1,00,000/- (Rupees one lakh only) towards compensation for the non-earning children up to the age of 5 (five) years old and a sum of Rs.1,50,000/- (Rupees one lakh fifty thousand only) for the nonearning persons of more than 5 (five) years old.14. In this case, it is to be noted that the accident was on 06.09.2004. In spite of repeated directions, Schedule-II is not yet amended. Therefore, fixing notional income at Rs.15,000/- per annum for nonearning members is not just and reasonable.15. In view of the judgments in the cases in Puttamma & Ors. (2013) 15 SCC 45,  R.K. Malik & Anr. (2009) 14 SCC 1  and Kishan Gopal & Anr. (2014) 1 SCC 244,  we are of the view that it is a fit case to increase the notional income by taking into account the inflation, devaluation of the rupee and cost of living. In view of the same, the judgment in the case of Rajendra Singh & Ors. (2020) 7 SCC 256 relied on by the learned counsel for respondent No.2-Insurance Company would not render any assistance to the case of the insurance company.