In a Motor Accident Claim, Loss suffered by Parents cannot be assessed with arithmetical precision:-

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In a Motor Accident Claim, Loss suffered by Parents cannot be assessed with arithmetical precision:-

The Supreme Court emphasized that determining compensation for a child's death under the Motor Vehicles Act must prioritize fairness and solace over rigid mathematical precision.

"The loss suffered by the parents of the deceased cannot be measured with arithmetical precision, and the compensation awarded, viewed holistically, cannot be said to transgress the bounds of 'just compensation' under the MV Act," the Court observed.

Akash Kumar, a CA Final student, died at 3:00 a.m. when his car struck an unlit, unreflective truck parked negligently on a dark Delhi road.

The Tribunal awarded ₹81.21 lakh after finding the truck driver negligent, and following the High Court's affirmation, both the insurer and the claimants appealed to the Supreme Court seeking a reduction and enhancement of the compensation, respectively.

Rejecting the insurer’s claim of excessive compensation, the Court ruled that altering the award over minor methodological overlaps would not serve substantive justice, given that the law seeks to provide solace for the irreparable loss of a young student at the threshold of a promising career.

"The life of a young individual and the loss suffered by his family cannot be measured in precise monetary terms, and the determination of 'just compensation' under the MV Act does not admit of mathematical exactitude," the Court said.

While declining the parents' request for further career-based enhancement as speculative, the Supreme Court added ₹80,000 for filial consortium under established legal precedents, thereby increasing the total payout to ₹82.01 lakh with interest to be deposited within four weeks.

The Oriental Insurance Co Ltd v Kalu Ram

2026 LiveLaw (SC) 643

 

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