A student’s notional income must be assessed using prevailing skilled-worker minimum wages for motor accident compensation.

On 14 September 2004, the deceased, aged approximately 22 years and studying in S.Y. B.Com., was travelling as a pillion rider on motorcycle No. GJ-3-NN-9238. A truck bearing registration No. GJ-10-V-6197 was allegedly driven rashly and negligently at excessive speed and collided with the motorcycle, resulting in fatal injuries to the deceased.

The Motor Accident Claims Tribunal, Rajkot, partly allowed MACP No. 1268/2004 and awarded Rs.80,000 with interest at 8% per annum. The claimant appealed to the High Court, challenging the adequacy of compensation, particularly the assessment of income, future prospects, multiplier, and conventional heads.

1. Whether the deceased’s notional income ought to have been assessed on the basis of the minimum wages applicable to a skilled worker rather than at Rs.15,000 per annum.

2. Whether 40% should be added towards future prospects and the multiplier should be determined with reference to the deceased’s age.

3. Whether the compensation under the conventional heads, including loss of estate, funeral expenses, and loss of consortium, required enhancement.

The Court relied on Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, 2025 ACJ 1986, for the principle that, where the deceased is a student and actual income is not established, income may be assessed on the basis of the minimum wages applicable to a skilled worker.

It applied Pranay Sethi principles for addition of future prospects and quantification under conventional heads, and Sidram v. Divisional Manager, United India Insurance Co. Ltd., 2022 INSC 1202, regarding future prospects.

The Court followed Sarla Verma v. Delhi Transport Corporation, AIR 2009 SC 3104, for applying the multiplier with reference to the deceased’s age and deducting one-half of the income towards personal expenses of a bachelor.

It further awarded parental consortium in accordance with Nanu Ram @ Chuhru Ram.

Since the deceased was a student and there was no proved actual income, the Court rejected the Tribunal’s assessment of Rs.15,000 per annum and adopted the notified minimum wage for a skilled worker in Gujarat in 2004, namely Rs.2,300 per month. Applying 40% future prospects, the monthly income became Rs.3,220. As the deceased was unmarried, one-half was deducted for personal expenses, resulting in a monthly dependency of Rs.1,610. Applying the multiplier of 18, based on the deceased’s age of 22 years, the loss of dependency was calculated at Rs.3,47,760.

The Court enhanced loss of estate and funeral expenses to Rs.18,150 each and awarded Rs.48,400 towards the surviving mother’s loss of consortium.

The total compensation was therefore recalculated at Rs.4,32,460.

The additional amount was directed to carry interest at 8% per annum from the date of filing of the claim petition until realization. Respondent No. 2, the insurance company, was directed to deposit the additional compensation with interest within six weeks, after which the Tribunal was to disburse the amount to the claimant after due verification and deduction of any deficit court fee.