Adoption of skilled worker minimum wages for notional income assessment in motor accident death claims.

On June 14, 2024, the deceased, Lilaben Shankarbhai Zala, was traveling in a rickshaw when an S.T. Bus, driven by respondent No. 1, crossed the road divider and collided with the rickshaw

The deceased sustained fatal injuries. The claimants (widow, two minor children, and mother) filed a petition seeking compensation

The Motor Accident Claims Tribunal (Main), Kheda, awarded Rs. 14,69,000/- with 7.5% interest, assessing the deceased's monthly income at a notional Rs. 8,000/- due to lack of documentary evidence

The appellants challenged this award, seeking enhancement based on prevailing minimum wages and proper conventional heads

1. Whether the learned Tribunal erred in assessing the monthly income of the deceased at Rs. 8,000/- in the absence of cogent evidence, rather than applying the prevailing minimum wages for a skilled worker

2. Whether the compensation awarded under future prospects and conventional heads (consortium, estate, and funeral expenses) required enhancement as per established precedents

The Court applied the notification by the Government of Gujarat regarding minimum wages for skilled workers to determine notional income

The Court relied on the principles for standardizing future prospects, multiplier application, and conventional heads established in National Insurance Company Ltd. v. Pranay Sethi & Others (2017) 16 SCC 680

The expansion of the "loss of consortium" head to include spousal, parental, and filial consortium as held in Magma General Insurance Company Ltd. v. Nanu Ram alias Chuhru Ram & Others (2018) 18 SCC 130

The Court found that while the income was not proved by evidence, the Tribunal should have adopted the minimum wage of Rs. 13,235/- per month applicable to skilled workers in Gujarat at the time of the accident (June 2024)

Applying the Pranay Sethi guidelines, the Court added 25% for future prospects (as the deceased was 45 years old), totaling Rs. 16,544/- monthly. Since there were four dependents, the Court deducted 1/4th for personal expenses and used a multiplier of 14, resulting in a dependency loss of Rs. 20,84,376/-

The Court further corrected the conventional heads, increasing funeral expenses and loss of estate to Rs. 18,150/- each, and awarding Rs. 48,400/- to each of the four legal heirs for loss of consortium, totaling Rs. 1,93,600/-

The Court ordered the Respondent No. 2 (Insurance Company) to deposit the additional amount of Rs. 8,45,276/- with interest at 7.5% per annum from the date of filing the petition within six weeks

The Tribunal was directed to disburse the entire amount to the claimants upon verification and payment of deficit court fees