Child’s notional income must be assessed via minimum wages plus future prospects for dependency calculation.

On 28.12.2011, a 12-year-old pedestrian, Priteshbhai Parmar, was hit by a Maruti Car (No. GJ-20-A-3105) driven negligently by Respondent No. 1, resulting in the minor's death.

The Motor Accident Claims Tribunal (Main), Dahod, awarded Rs. 5,00,000/- with 7% interest from 12.07.2023 (the date the Insurance Company was impleaded).

The claimants appealed to the Gujarat High Court seeking enhancement of compensation and interest from the date of the original petition filing rather than the impleadment date.

1. Whether the income of a deceased minor should be assessed based on notional income or minimum wages for the calculation of dependency loss?

2. Whether the claimants are entitled to interest from the date of filing the claim petition or from the date of impleading the Insurance Company?

The Court applied the mandate from Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari, 2025 (0) AIJEL-SC 75833, which establishes that a deceased child’s income must be calculated based on the minimum wages of a skilled worker in the relevant State.

Future prospects were added as per National Insurance Company Ltd. v. Pranay Sethi, (2017) 16 SCC 680.

Consortium was awarded following Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram, (2018) 18 SCC 130.

Regarding interest, the Court applied the Division Bench ruling in Oriental Insurance Co. Ltd. v. Aminaben Rahimbhai Kadiwala, 2001 (2) GLR 1108, which holds that delay in impleading an insurer does not deprive claimants of interest from the date of the initial filing.

The Court found the Tribunal’s assessment of Rs. 30,000/- annual notional income erroneous.

Applying the minimum wage of Rs. 4,710/- (Gujarat, 2011) plus 40% future prospects, and deducting 1/2 for personal expenses of a bachelor, the Court recalculated the dependency loss at Rs. 5,93,460/- using a multiplier of 15.

It further enhanced conventional heads (Loss of Estate and Funeral Expenses) to Rs. 18,150/- each and awarded parental consortium of Rs. 96,800/-.

On the procedural issue of interest, the Court reasoned that since the policy's validity was undisputed, the Insurance Company remains liable for interest from the date the petition was first filed, irrespective of when they were formally joined as a party.

It modified the Tribunal's order to grant interest at 7% per annum on the entire amount starting from the date of filing of the claim petition until realization. The Insurance Company was directed to deposit the additional amount within six weeks.