Gujarat HC Raises Injured Labourer’s Road-Crash Compensation By Rs 49,234, Applying 2007 Minimum Wage And 40% Future Prospects

The claimant sustained injuries and permanent partial disability in a road accident on 10 January 2007.

The Motor Accident Claims Tribunal awarded total compensation of ₹1,94,308, assessing the claimant’s monthly income at ₹1,800 and allowing 14% disability.

The claimant appealed under Section 173 of the Motor Vehicles Act, 1988, seeking enhancement on the basis that the applicable minimum monthly wage was ₹2,400 and that future prospects should be added.

Section 173 of the Motor Vehicles Act, 1988 provides for an appeal against an award of the Claims Tribunal.

Under National Insurance Company Limited v. Pranay Sethi, a claimant below 40 years is entitled to an addition of 40% towards future prospects.

Compensation for future loss of income is calculated by applying the relevant functional disability and multiplier to the income, including future prospects.

The Court accepted that the claimant was 27 years old at the time of the accident and that the Tribunal’s assessment of monthly income at ₹1,800 was lower than the prevailing minimum wage of ₹2,400.

Applying the 40% future-prospects addition, the Court assessed monthly income at ₹3,360. Using the agreed 14% disability and multiplier of 17, it calculated future loss of income at ₹95,962; it also reassessed three months’ actual loss of income at ₹10,080.

The resulting total compensation was ₹2,43,542, an increase of ₹49,234 over the Tribunal’s award.

Oriental Insurance Company Ltd. was directed to deposit the enhanced amount with interest before the Tribunal within six weeks; the Tribunal was directed to disburse the awarded amount, subject to applicable court fees, and the remaining directions of the Tribunal were left undisturbed.