In absence of cogent income evidence, courts must assess earnings using prevailing minimum wages.

On 27 March 2023, Vishnubhai Chimanlal Patel was walking across the Sola Overbridge when he was struck by a Honda motorcycle allegedly driven rashly and negligently by respondent No.1. He sustained grievous injuries and subsequently died.

His widow and son instituted Motor Accident Claim Petition No.168 of 2023 before the Principal District Judge and Motor Accident Claims Tribunal (Main), Mahesana. The Tribunal partly allowed the claim and awarded ₹8,49,680 with interest at 7% per annum from the date of filing of the claim petition until realization.

The claimants appealed only on the quantum of compensation, principally challenging the assessment of the deceased’s income.

Whether the Tribunal had correctly assessed the deceased’s monthly income for computing loss of dependency, despite the absence of cogent proof of actual income?

Whether the compensation payable to the claimants required enhancement by applying the appropriate minimum wage, future prospects, personal-expense deduction, and age-based multiplier?

In a motor accident compensation claim, where the deceased’s actual income is not established by cogent evidence, the court may assess income on the basis of the applicable minimum wages prevailing on the date of the accident.

For a deceased aged about 58 years, 10% is added towards future prospects. Where the deceased is survived by a widow and son, one-third of the income is deducted towards personal expenses, and the appropriate multiplier is applied according to the deceased’s age; here, the multiplier was 9.

Compensation under conventional heads, including loss of estate, loss of consortium, and funeral expenses, is maintained where it has already been justly assessed.

The High Court found that although the revenue records showed that the deceased possessed 15 bighas of agricultural land, the claimants had not produced cogent evidence proving an annual income of ₹4,00,000.

Since the accident occurred on 27 March 2023, the applicable minimum wage for a skilled worker was ₹9,887.80 per month. The Court rounded this figure to ₹10,000 and added 10% for future prospects, resulting in a monthly income of ₹11,000.

After deducting one-third for personal expenses, the monthly contribution to the family was assessed at ₹7,334. Applying the multiplier of 9, the loss of dependency was calculated at ₹7,92,072.

The amounts awarded under loss of estate, loss of consortium, and funeral expenses—₹18,150, ₹96,800, and ₹18,150 respectively—were upheld as just compensation.

The Insurance Company was directed to deposit the additional compensation with interest at 7% per annum from the date of filing of the claim petition until realization within six weeks from receipt of the judgment.

Upon deposit, the Tribunal was directed to disburse the amount to the claimants after deducting any deficit court fees and completing due verification.