In plain words: when compensation is awarded to a child, the law does not simply hand the money over. It is protected — usually locked in fixed deposits under the Tribunal's watch — so it is there when the child grows up.
Why minors are treated specially
A minor cannot manage a large sum, and there is a real risk of the money being misused by others. So Tribunals take active steps to safeguard a minor's compensation rather than releasing it outright.
How the money is protected
- Fixed-deposit investment: the award (or the bulk of it) is placed in fixed deposits in the minor's name, often until the child turns 18.
- No premature withdrawal without the Tribunal's permission — and no loans or advances against the deposit to third parties.
- Periodic interest may be allowed for the child's maintenance and education where needed.
- Direct credit of interest and maturity to the minor's account to prevent diversion.
The guardian's limited role
A parent or guardian represents the minor in the claim, but does not get a free hand over the money. Any withdrawal for the child's genuine needs (medical care, education) usually requires the Tribunal's prior permission, with reasons. This protects the child even from well-meaning but unwise spending.
When the money is released
The deposit typically matures to the child on attaining majority (18), when the full amount, with accrued interest, is released. Until then, access is controlled and purpose-specific.
Frequently asked questions
Can a parent withdraw the child's compensation? Only with the Tribunal's permission, for the child's genuine needs — not freely.
When does the child get the money? Usually on turning 18, when the fixed deposit matures.
Can we get interest for the child's school fees? Tribunals may allow periodic interest for maintenance and education on a proper application.
How Vakil Help Desk helps
Vakil Help Desk protects a child's compensation — ensuring it is properly invested, guarded against misuse, and released correctly. If a minor in your family has an accident claim, we can help secure and safeguard their award.
This article is for general legal awareness, not individual legal advice. Compensation and tax outcomes depend on the facts, the evidence and the law as applied to your case, and figures and positions are revised over time. Please consult a lawyer before acting.