Minimum wages for skilled workers must be used to assess loss of dependency absent cogent proof of income.

On February 10, 2022, Jayantibhai Manubhai Parmar was traveling on a motorcycle when a Verna car driven by Respondent No. 1 at excessive speed dashed into the rear of the motorcycle.

Jayantibhai sustained fatal injuries.

The claimants (appellants) filed MACP No. 246/2022 seeking ₹30,00,000/- in compensation, asserting the deceased was a laborer earning ₹15,000/- per month.

The Motor Accident Claims Tribunal (Anand) awarded ₹11,41,000/- with 9% interest, assessing the deceased’s monthly income at ₹7,500/- due to lack of documentary evidence.

The appellants challenged this award on the grounds of inadequate quantum.

1. Whether the Tribunal erred in its assessment of the deceased's monthly income and the application of minimum wages for the year 2022.

2. Whether the compensation awarded under conventional heads (loss of estate, funeral expenses, and consortium) was consistent with established legal precedents.

The court primarily applied the principles of "just compensation" under the Motor Vehicles Act.

It relied on Sarla Verma v. Delhi Transport Corporation regarding the multiplier method and 50% deduction for personal expenses for a bachelor.

It followed National Insurance Co. Ltd. v. Pranay Sethi to determine future prospects (40% for age 28) and standardized awards for conventional heads, including a 10% increment every three years.

Further, Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram was applied to govern the distribution of consortium.

The High Court found that while the appellants failed to prove a monthly income of ₹15,000/-, the Tribunal's assessment of ₹7,500/- was below the statutory minimum wage for a skilled worker in 2022, which was ₹9,490/-.

The Court reassessed the income at ₹9,490/-, added 40% for future prospects (totaling ₹13,286/-), and applied a multiplier of 17.

As the deceased was a bachelor, a 1/2 deduction for personal expenses was applied, resulting in a dependency loss of ₹13,55,172/-.

The Court further determined that the Tribunal awarded meager sums for conventional heads; following the Pranay Sethi indexation, it enhanced "Loss of Estate" and "Funeral Expenses" to ₹18,150/- each, and "Loss of Consortium" for the mother to ₹48,400/-.

The Respondent No. 3 (Insurance Company) was ordered to deposit the additional ₹2,98,872/- with 9% interest from the date of the claim petition's filing within six weeks.

The Court held that in the absence of specific proof of income, dependency must be calculated based on the prevailing minimum wages at the time of the accident.