Compensation for death of non-earning children includes structured pecuniary loss, future prospects, and non-pecuniary damages.

In motor accident claims for the death of non-earning schoolchildren, compensation under the Motor Vehicles Act is assessed by the Second Schedule and multiplier method for pecuniary loss, and future prospects may also be included where the child's academic record supports such an award. The law further recognises separate non-pecuniary compensation for loss of life, companionship, happiness, pain and suffering, and loss of expectation of life, to be fixed on a just, fair and conventional basis. Interest and the High Court's enhancement were found proper, and only the omission of an amount for future prospects required correction.

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Issues: (i) whether, in claims arising from the death of non-earning schoolchildren, compensation under the Motor Vehicles Act was to be assessed by the Second Schedule and the multiplier method, with future prospects being taken into account; (ii) whether the claimants were entitled to non-pecuniary compensation for loss of life, companionship, happiness, pain and suffering, and loss of expectation of life; (iii) whether the award of interest and the High Court's enhancement required interference.

Issue (i): whether, in claims arising from the death of non-earning schoolchildren, compensation under the Motor Vehicles Act was to be assessed by the Second Schedule and the multiplier method, with future prospects being taken into account.

Analysis: The structured formula in the Second Schedule supplied the appropriate basis for assessing pecuniary loss where the deceased was not earning. The notional income, deduction for personal expenses and the applicable multiplier provided a consistent method for determining loss of dependency. The Court also held that future prospects and the children's academic record were relevant circumstances and that denial of any amount for future prospects was unjustified.

Conclusion: The Second Schedule and the multiplier method were correctly applied for pecuniary compensation, but the claimants were also entitled to an additional amount towards future prospects.

Issue (ii): whether the claimants were entitled to non-pecuniary compensation for loss of life, companionship, happiness, pain and suffering, and loss of expectation of life.

Analysis: The Court distinguished pecuniary loss from non-pecuniary loss and held that the death of a child causes compensable emotional and relational harm. It reaffirmed that such loss cannot be measured precisely in money terms, but the law nevertheless requires a just, fair and conventional monetary award. The High Court's award under this head was found to be reasonable.

Conclusion: The claimants were entitled to non-pecuniary compensation, and the enhanced amount awarded by the High Court was upheld.

Issue (iii): whether the award of interest and the High Court's enhancement required interference.

Analysis: The interest granted by the High Court was considered just and proper. The Court found no infirmity in the enhancement of compensation by the High Court apart from granting an additional amount for future prospects.

Conclusion: The award of interest was maintained and the High Court's enhancement was not disturbed.

Final Conclusion: The appeals succeeded only to the extent of granting additional compensation for the children's future prospects, while the rest of the compensation structure, including the non-pecuniary award and interest, was affirmed.

Ratio Decidendi: In motor accident claims for the death of non-earning children, just compensation must include both pecuniary loss assessed on the structured formula and a separate award for future prospects and non-pecuniary loss, with the amount fixed on a fair and conventional basis.

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