Minimum Wages for Skilled Workers Must Govern Income Assessment for Students in Motor Accident Claims

On December 20, 2016, Akashkumar Natubhai Dhodiya, a 17-year-old ITI student, died following a motor accident involving a motorcycle and a rashly driven car.

The Motor Accident Claims Tribunal (MACT), Surat, awarded ₹4,86,600/- with 9% interest, assessing the deceased's income at a flat ₹36,000/- per annum.

The appellants (parents) challenged this award before the High Court, seeking enhancement based on minimum wage standards for skilled workers and revised conventional heads.

1. Whether the Tribunal erred in assessing the income of the deceased at ₹36,000/- per annum instead of applying the prevailing minimum wages for a skilled worker.

2. Whether the compensation awarded under conventional heads (loss of estate, funeral expenses, and consortium) was adequate under settled law.

The Court applied the principles of "just compensation" as established in National Insurance Company Ltd. v. Pranay Sethi (2017) regarding future prospects (40% for deceased under 40 years) and fixed amounts for conventional heads.

It relied on Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018) for awarding parental consortium to both claimants.

Furthermore, it followed Hitesh Nagjibhai Patel v. Bababhai Nagjibhai Rabari (2025) which mandates using minimum wages in the absence of proof of actual income for students.

The Court observed that despite being a student, the deceased’s potential income should be pegged to the minimum wage of a skilled worker (ITI Fitter course) prevalent in Gujarat at the time of the accident, which was ₹8,159/- (rounded to ₹8,200/-).

To this, the Court added 40% for future prospects (totaling ₹11,480/-) and deducted 1/2 for personal expenses as the deceased was a bachelor, resulting in a monthly dependency of ₹5,740/-.

Applying a multiplier of 18, the future loss of dependency was recalculated to ₹12,39,840/-. The Court further corrected the "meagre" conventional awards by increasing Loss of Estate and Funeral Expenses to ₹18,150/- each, and granting Loss of Consortium at ₹48,400/- per parent (totaling ₹96,800/-).

It enhanced the total compensation from ₹4,86,600/- to ₹13,72,940/-, ordering the Insurance Company to pay an additional sum of ₹8,86,340/- with 9% interest per annum from the date of the claim petition. The Insurance Company was directed to deposit the amount within six weeks.