Gujarat High Court
Insurance LawTransport, Maritime, and Aviation Law

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
Minimum wages apply for income assessment in motor accident claims absent cogent proof of salary.. HANSABEN NARVATBHAI RATHOD vs DINANATHRAM BHAGESHWARRAM. Gujarat High Court. LawLens
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
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19881

Gujarat High Court

Original Court PDF

HANSABEN NARVATBHAI RATHODvsDINANATHRAM BHAGESHWARRAM

Gujarat High Court · July 09, 2026

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