Minimum wages determine notional income in motor accident claims absent cogent evidence of actual earnings.

The appellants (claimants) challenged the judgment and award dated 30.05.2013 passed by the Motor Accident Claims Tribunal (Auxiliary), Kheda in MACP No. 1110/2001

On 29.12.2000, the deceased, aged 50 and engaged in animal husbandry, died in a motor accident

The Tribunal originally awarded Rs. 2,69,424/- as compensation with 7.5% interest, assessing the deceased’s monthly income at Rs. 1,800/-

The appellants contended that the income was assessed below the prevailing minimum wages and that the compensation under conventional heads was inadequate

1. Whether the Tribunal erred in assessing the notional monthly income of the deceased below the minimum wages prevalent at the time of the accident

2. Whether the compensation awarded under the heads of future dependency and conventional heads (consortium, funeral expenses, and loss of estate) required enhancement based on established legal principles

The Court applied the principle that in the absence of cogent evidence of income, the Tribunal must consider the minimum wages notified by the State Government at the time of the accident

Regarding future prospects, the Court applied a 25% addition for a deceased aged 50 years.

For dependency, the Court followed the rule of deducting 1/4th of the income for personal expenses where there are four dependents, and applied a multiplier of 13 based on the age of the deceased

Furthermore, the Court applied the principle that all legal representatives are entitled to loss of consortium, and standardized awards for funeral expenses and loss of estate

The Court observed that since the accident occurred on 29.12.2000, the Tribunal’s assessment of Rs. 1,800/- per month was incorrect as the minimum wage for a skilled worker notified by the Government of Gujarat was Rs. 2,100/-

By reassessing the income at Rs. 2,100/- and adding 25% for future prospects (totaling Rs. 2,625/-), and then deducting 1/4th for personal expenses, the monthly dependency was calculated at Rs. 1,969/-

Applying the multiplier of 13, the future loss of dependency was corrected to Rs. 3,07,164/-

The Court further determined that the Tribunal awarded "meagre" sums for conventional heads; it enhanced loss of consortium to Rs. 1,93,600/- (Rs. 48,400 x 4 dependents) and increased loss of estate and funeral expenses to Rs. 18,150/- each to align with current judicial standards

The Court held that the claimants are entitled to an additional compensation of Rs. 2,98,640/- with interest at 7.5% per annum from the date of the claim petition until realization

Respondent No. 3 (Insurance Company) was directed to deposit the additional amount within six weeks, and the Tribunal was ordered to disburse the amount to the claimants after verifying court fees