For injured students, future income loss is assessed using skilled-worker minimum wages.

On 21 May 2024, the appellant, aged approximately 17 years and studying in Standard XII, was travelling as a pillion rider on a motorcycle when an ST bus allegedly driven rashly and negligently collided with it, causing him multiple serious injuries, including fractures and a head injury.

He underwent hospitalisation and surgical treatment and was assessed as having 64% functional disability. The Motor Accident Claims Tribunal, Kheda at Nadiad, partly allowed MACP No. 598 of 2024 and awarded ₹7,48,110 with interest at 7.5% per annum. The claimant challenged the award in appeal, seeking enhancement of compensation under the head of future loss of income and other heads.

Whether the compensation for future loss of income of a 17-year-old student with 64% functional disability should be assessed by applying the minimum wages for a skilled worker prevailing on the date of the accident and by granting future prospects.

Whether the claimant was entitled to additional compensation for pain, shock and suffering, actual loss of income, special diet, attendant charges and transportation.

Whether the Tribunal’s award required modification and, if so, to what extent.

The Court applied the principles governing compensation under the Motor Vehicles Act, 1988, including assessment of loss of earning capacity in motor accident claims. Relying on Master Mallikarjun v. Divisional Manager, National Insurance Co. Ltd., (2014) 14 SCC 396, it recognised the special approach applicable to compensation claims involving children or students.

Under Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari & Anr., 2025 ACJ 1986, the income of a student may be assessed on the basis of the minimum wages applicable to a skilled worker prevailing at the time of the accident. The Court further relied on National Insurance Co. Ltd. v. Pranay Sethi, (2017) 16 SCC 680, and Sidram v. The Divisional Manager, United India Insurance Co. Ltd. & Anr., 2022 INSC 1202, for adding 40% towards future prospects. The multiplier of 18 was applied with reference to the claimant’s age.

Since the claimant was a 17-year-old student and had no actual income, the Court rejected an assessment based on nil income and adopted the notified minimum wage for a skilled worker, namely ₹13,234 per month, as directed by Hitesh Nagjibhai Patel. It added 40% for future prospects, resulting in a monthly income of ₹18,528. Applying the undisputed functional disability of 64%, the annual multiplier method and multiplier 18, the Court calculated future loss of income at ₹25,61,311.

Considering the multiple fractures, head injury, prolonged hospitalisation and surgery, it awarded ₹1,00,000 for pain, shock and suffering. Medical expenses of ₹2,48,110, supported by bills, were maintained. The Court additionally granted ₹52,936 for four months’ actual loss of income and ₹50,000 collectively for special diet, attendant charges and transportation. The total compensation was thereby recalculated at ₹30,12,357.

The additional amount was to carry interest at 7.5% per annum from the date of filing of the claim petition until realization. The Gujarat State Road Transport Corporation was directed to deposit the additional compensation with interest within six weeks of receiving the order. The Tribunal was directed to disburse the compensation and interest to the claimant after due verification and deduction of any deficit court fee, if applicable.