Income of minor in motor accident claims must be assessed based on prevailing minimum wages of skilled workers.

In brief

The question

1. Whether the income of a minor claimant in a motor accident case should be assessed based on the prevailing minimum wages of a skilled worker.

The court held

The High Court partly allowed the appeal, increasing the total compensation from Rs. 1,25,020/- to Rs. 3,23,785/-.

It also directed

The respondent Insurance Company was directed to deposit the additional amount of Rs. 1,98,765/- with 7.5% interest per annum within six weeks. The judgment and award of the Tribunal were modified accordingly.

01Facts

On June 10, 2021, the minor appellant was hit by a motorcycle driven negligently by Opponent No. 1, resulting in grievous injuries.

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The Motor Accident Claims Tribunal (MACT), Nadiad, awarded Rs. 1,25,020/- with 7.5% interest in MACP No. 899 of 2021.

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Dissatisfied with the quantum of compensation, the claimant appealed to the High Court, seeking an enhancement based on the minimum wage of a skilled worker and future prospects.

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02Issues

i.1. Whether the income of a minor claimant in a motor accident case should be assessed based on the prevailing minimum wages of a skilled worker.

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ii.2. Whether the claimant is entitled to additional compensation under the heads of future prospects, actual loss of income, and miscellaneous charges (diet, attendant, and transportation).

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03Law Applied

The Court primarily applied the principles of "just compensation" under the Motor Vehicles Act, 1988.

The Court relied heavily on the Hon'ble Supreme Court precedent in Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari and Anr. (2025), which mandates that for injuries to a child, loss of income must be calculated based on the minimum wages of a skilled worker in the respective State at the relevant time.

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The Court also applied the multiplier method from Sarla Verma v. Delhi Transport Corporation and the guidelines for non-pecuniary damages for minors established in Master Mallikarjun v. Divisional Manager, National Insurance Co. Ltd.

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Provisions in the judgment · 1 · Linked ones open on LawLens

Motor Vehicles Act, 1988 Section 166

04Reasoning

The Court noted that the Tribunal erred by not using the minimum wage standard for the minor. Following Hitesh Nagjibhai Patel, the Court fixed the minor’s monthly income at Rs. 9,495/-, the rate for skilled workers in Gujarat as of June 2021.

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A 40% addition for future prospects was applied, bringing the monthly total to Rs. 13,293/-. With a 10% functional disability and a multiplier of 15, the future loss of income was recalculated to Rs. 2,39,280/-.

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The Court further corrected the omission of special diet and attendant charges, awarding Rs. 15,000/-, and adjusted the "actual loss of income" to reflect three months of the new minimum wage.

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The Court reduced the award for "mental pain and suffering" from Rs. 1,00,000/- to Rs. 25,000/- since compensation was now specifically allocated under separate pecuniary heads.

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