Gujarat High Court raises compensation for family of 17-year-old accident victim from ₹5.1 lakh to ₹16.28 lakh using skilled-worker minimum wages

On 26 March 2023, Dipakbhai Rajeshbhai Parmar, aged 17 years and engaged in masonry work, was riding motorcycle No. GJ-23-DE-0204 when an S.T. bus driven allegedly rashly and negligently by respondent No. 1 collided with the motorcycle, causing his instantaneous death.

His legal heirs filed a claim petition under Section 166 of the Motor Vehicles Act seeking ₹15,00,000.

The Motor Accident Claims Tribunal held the bus driver entirely negligent and the Gujarat State Road Transport Corporation liable, but awarded only ₹5,10,000 with interest at 7.5% per annum, calculating the deceased’s annual income at ₹30,000 as notional income.

The claimants preferred the present appeal under Section 173 of the Motor Vehicles Act, seeking enhancement.

1. Whether the Tribunal erred in assessing the deceased’s annual income at ₹30,000 as notional income despite the evidence regarding his occupation and the prevailing minimum wages.

2. Whether the claimants were entitled to enhancement of compensation, including compensation under the heads of loss of dependency and non-pecuniary damages.

The appeal was governed by Sections 166 and 173 of the Motor Vehicles Act, 1988, concerning the claim for compensation and appellate jurisdiction, respectively.

For determining just, fair and adequate compensation where documentary proof of income is absent, the Court applied the principle that the prevailing minimum wages, at least those applicable to a skilled workman, may be adopted rather than an unduly low notional income.

The Court relied on Hitesh Nanjibhai Patel v. Bababhai Nanjibhai Rabari & Anr., 2025 INSC 1070, which, following Kajal v. Jagdish Chand and Baby Sakshi Greola v. Manzoor Ahmad Simon, held that a child should not be treated as a non-earning individual and that minimum wages payable to a skilled workman may be used for assessing loss of income.

The Court also applied the multiplier of 18, a 40% addition for future prospects, a 50% deduction towards personal expenses, and the conventional amounts for consortium, loss of estate and funeral expenses.

The Tribunal’s assessment of ₹30,000 per annum was found to be unsupported by the evidence and disconnected from the prevailing minimum wage.

The pleadings and the parents’ deposition, which were substantially uncontroverted, supported the deceased’s engagement in masonry work.

Since the accident occurred on 26 March 2023, the Court adopted the applicable skilled-worker minimum wage of ₹9,887 per month.

Applying a 40% increase for future prospects, deducting 50% for personal expenses, and applying multiplier 18, the Court calculated the loss of dependency at ₹14,94,936.

It further revised consortium to ₹96,800, loss of estate to ₹18,150, and funeral expenses to ₹18,150, resulting in total compensation of ₹16,28,036.

After deducting the Tribunal’s award of ₹5,10,000, the enhanced compensation was ₹11,18,036.

The claimants were held entitled to enhanced compensation of ₹11,18,036, carrying interest at 7.5% per annum from the date of the claim petition until realization.

The Gujarat State Road Transport Corporation was directed to deposit the enhanced amount with accrued interest within 12 weeks, after which the Tribunal was directed to disburse the awarded amount to the claimants in accordance with law and after deducting any payable court fees.