Minimum wages applicable to unskilled labor must determine compensation income where documentary proof is lacking.

The appellants filed a claim under Section 173(1) of the Motor Vehicles Act, 1988, challenging the award dated 30.07.2025 passed by the First Motor Accident Claims Tribunal, Gwalior.

The deceased, Ajay Adiwasi (21 years old), died in a motor accident.

The Tribunal awarded total compensation of Rs. 12,33,820/-, assessing his monthly income at Rs. 7,600/-.

The appellants sought enhancement, arguing the income was undervalued and conventional heads were improperly calculated.

1. Whether the income of the deceased was correctly assessed by the Claims Tribunal in the absence of documentary evidence.

2. Whether the appellants are entitled to enhanced compensation under the heads of future prospects, multiplier application, and conventional heads.

The Court applied the principle that in the absence of documentary proof of income, wages must be assessed per the Minimum Wages Act, as established in Sukhdevi v. Devendra Kumar and National Insurance Co. Ltd. v. Renu Devi.

Regarding future prospects, the Court applied the 40% addition for deceased persons below 40 years as per National Insurance Co. Ltd. v. Pranay Sethi.

The multiplier of 18 was determined per Sarla Verma v. Delhi Transport Corporation.

Parental consortium and loss of estate were governed by the standards set in United India Insurance Co. Ltd. v. Satinder Kaur.

The High Court found that the claimants failed to provide substantial evidence of the deceased’s alleged Rs. 15,000/- monthly income.

Consequently, it re-assessed the income as an unskilled person under the Minimum Wages Act at Rs. 9,125/- per month.

Applying the settled law, the Court added 40% for future prospects and applied a multiplier of 18 based on the deceased's age (21 years).

Since the deceased was a bachelor, a 1/2 deduction for personal expenses was made.

The Court also revised the conventional heads to include Rs. 96,000/- for loss of consortium (to parents) and Rs. 36,000/- for loss of estate and funeral expenses, leading to a total calculation of Rs. 15,11,700/-.

The compensation was enhanced by Rs. 2,77,880/-, bringing the total to Rs. 15,11,700/-.

The court ordered the respondent Insurance Company to pay the enhanced amount with interest (as fixed by the Tribunal) within three months.

The delay in filing the appeal was also condoned.