Disability compensation must reflect prevailing minimum wages and include applicable future prospects.

The appellant-claimant, aged approximately 24 years, sustained injuries and 20% permanent disability of the body as a whole in a motor accident on 26 April 2024.

The Motor Accident Claims Tribunal, Kheda at Nadiad, awarded total compensation of Rs.5,26,537/- with interest at 7.5% per annum, after assessing the claimant’s monthly income at Rs.8,000/- and applying a multiplier of 18.

The claimant challenged the award only to seek enhancement, contending that his income should have been assessed according to the minimum wages applicable to a skilled worker in Gujarat and that future prospects should also have been awarded.

The insurer accepted the occurrence of the accident, its liability, and the absence of any policy breach.

Whether the claimant’s income for computing loss of future earning capacity ought to have been assessed on the basis of the minimum wages applicable to a skilled worker in Gujarat at the time of the accident, rather than at Rs.8,000/- per month.

Whether the claimant was entitled to an addition of 40% towards future prospects, having regard to his age of approximately 24 years.

Whether the compensation awarded by the Tribunal required enhancement on account of the revised income assessment and future prospects.

The Court relied on the principle approved by the Supreme Court in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari & Anr., reported in 2025 LiveLaw (SC) 871, that minimum wages prevailing on the date of the accident may be adopted for assessing the income of a claimant where appropriate.

It further applied the future-prospects rule laid down in National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, under which a 40% addition is permissible for a claimant below 40 years of age.

The Court also applied the multiplier of 18 applicable to the claimant’s age and calculated loss of earning capacity with reference to the assessed 20% whole-body disability.

The Court found that the Tribunal had erred in adopting a monthly income of Rs.8,000/- without adopting the prevailing minimum wages for a skilled worker.

Since the accident occurred on 26 April 2024, the applicable minimum wage was treated as Rs.13,234/-, rounded off to Rs.13,250/- per month.

As the claimant was approximately 24 years old, the Court added 40% towards future prospects, resulting in a monthly income of Rs.18,550/-.

Applying 20% disability and a multiplier of 18, it calculated loss of future earning capacity at Rs.8,01,360/-, compared with Rs.3,45,600/- awarded by the Tribunal.

It also revised actual loss of income for four months from Rs.32,000/- to Rs.53,000/-, while maintaining the amounts awarded for medical expenses, special diet, transportation, attendant charges, pain and suffering, and loss of amenities.

The rate of interest at 7.5% per annum was held to be just and was maintained.

The Court enhanced the total compensation to Rs.10,03,297/- and awarded additional compensation of Rs.4,76,760/-, with interest at 7.5% per annum from the date of filing of the claim petition until realization.

Opponent No.3, the insurer, was directed to deposit the additional compensation, interest, and proportionate costs before the concerned Tribunal within eight weeks from the date of judgment.