Gujarat High Court

Minimum wages apply for income assessment in motor accident claims absent cogent proof of salary.

HANSABEN NARVATBHAI RATHOD vs DINANATHRAM BHAGESHWARRAM

Gujarat High CourtJUDGMENT: July 09, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On December 11, 2022, the deceased, Narvatsinh Bharatsinh Rathod, was killed when a rashly driven vehicle (GJ.12.B.W.0928) hit his bicycle

Source reference: p. 1-2

The Motor Accident Claims Tribunal (MACT), Kheda, awarded Rs. 16,93,500/- with 7.5% interest, assessing the deceased's monthly income at a nominal Rs. 7,500/- due to lack of documentary proof

Source reference: p. 1, 3-4

The claimants (the widow, two minor children, and parents) appealed to the High Court seeking enhancement, contending that as a helper in Gujarat Vyapar Mandal supporting five members, his income was higher

Source reference: p. 2-3
02

Issues

1. Whether the Tribunal erred in assessing the monthly income of the deceased at Rs. 7,500/- in the absence of documentary evidence

Source reference: p. 4

2. Whether the compensation awarded under conventional heads (consortium, funeral expenses, loss of estate) followed the settled legal principles

Source reference: p. 3, 5
03

Law Applied

The court applied the minimum wage standards for skilled workers notified by the Government of Gujarat as of the date of the accident

Source reference: p. 4

National Insurance Company Ltd. v. Pranay Sethi (2017) 16 SCC 680 regarding the 40% addition for future prospects for a deceased aged 37 and the fixed amounts for conventional heads

Source reference: p. 3, 4

Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) 18 SCC 130, which grants "parental," "spousal," and "filial" consortium to all legal representatives of the deceased

Source reference: p. 3, 5

Chandra @ Chanda @ Chandraram & Anr. v. Mukesh Kumar Yadav & Ors. (2021) was cited regarding the assessment of income based on familial responsibility and oral evidence

Source reference: p. 3
04

Reasoning

The High Court found the Tribunal’s assessment of Rs. 7,500/- per month too low. Considering the accident occurred in late 2022, the Court noted the state-notified minimum wage for skilled workers was Rs. 9,887.50, and thus reassessed the income at a rounded Rs. 10,000/- per month

Source reference: p. 4

The Court applied a 40% addition for future prospects (reaching Rs. 14,000/-) and deduced 1/4th for personal expenses given there were five dependents (reaching Rs. 10,500/-)

Source reference: p. 4-5

Using a multiplier of 15 based on the deceased's age (37), the "Future Loss of Dependency" was re-calculated to Rs. 18,90,000/-

Source reference: p. 5

The Court also corrected the "meagre" conventional awards by granting Rs. 48,400/- per dependent for consortium and updating funeral and estate loss figures per Pranay Sethi standards

Source reference: p. 5
05

Holding

The High Court partially allowed the appeal, answering that the income assessment and conventional awards required upward revision

It enhanced the total compensation from Rs. 16,93,500/- to Rs. 21,68,300/-, granting an additional sum of Rs. 4,74,800/-. The Court ordered the insurance company (Respondent No. 3) to deposit the additional amount with 7.5% interest within six weeks

Source reference: p. 5, 6
Gujarat High Court

Original Court PDF

HANSABEN NARVATBHAI RATHODvsDINANATHRAM BHAGESHWARRAM

Gujarat High Court · July 09, 2026

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