Gujarat HC Raises Compensation For 17-Year-Old Killed In 2015 Crash To Rs 13.02 Lakh, Using Rs 7,644 Monthly Minimum Wage

The claimants appealed under Section 173 of the Motor Vehicles Act, 1988 against the Tribunal’s award in a fatal motor-accident claim.

The deceased was 17 years old and died in an accident in July 2015.

The Tribunal assessed his monthly income at ₹1,250, applied a multiplier of 15, and awarded total compensation of ₹2,95,000.

The claimants challenged the assessment of income and sought recalculation of dependency and conventional heads of compensation; the insurer opposed the appeal.

Liability for the accident was not in dispute.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against a Tribunal’s award, and the Act requires just and fair compensation.

Under National Insurance Co. Ltd. v. Pranay Sethi, a deceased below 40 years is entitled to a 40% addition for future prospects, and compensation may include the prescribed amounts for loss of estate and funeral expenses.

Under Sarla Verma (Smt.) v. Delhi Transport Corporation, the appropriate multiplier for a deceased aged 15–20 years is 18, with a 50% deduction for personal expenses where the deceased was unmarried.

Under United India Insurance Co. Ltd. v. Satinder Kaur, consortium is payable to each eligible claimant.

The Court found the Tribunal’s monthly income assessment of ₹1,250 inadequate for an accident occurring in July 2015 and reassessed income at the prevailing minimum wage of ₹7,644 per month.

It applied 40% future prospects, deducted 50% for the deceased’s personal expenses, and substituted a multiplier of 18 for the Tribunal’s multiplier of 15.

It also reassessed funeral expenses and loss of estate at ₹19,965 each and consortium at ₹53,240 for each of the two claimants.

These calculations produced total compensation of ₹13,02,226, less the ₹2,95,000 already awarded.

The claimants were awarded enhanced compensation of ₹10,07,226, with interest at 9% per annum from the date of filing the claim petition until realization.

The insurer was directed to deposit the enhanced amount before the Tribunal within six weeks; the Tribunal was directed to disburse the awarded amount, subject to verification and deduction of any unpaid court fees.