Minimum wages must be considered for income assessment when cogent evidence of earnings is absent.

On June 18, 2019, the appellant was traveling in a rickshaw when a loading tempo, traveling on the wrong side in a rash and negligent manner, collided head-on with the vehicle.

The appellant sustained serious injuries and multiple fractures.

The Motor Accident Claims Tribunal (Auxi.), Kheda at Nadiad, awarded Rs. 4,70,350/- with 7.5% interest, assessing the appellant's monthly income at Rs. 6,500/-.

Dissatisfied with the quantum of compensation, the claimant preferred this appeal seeking enhancement.

1. Whether the Tribunal erred in assessing the monthly income and future prospects of the claimant in the absence of cogent evidence of earnings.

2. Whether the compensation awarded under the heads of "Pain, Shock and Suffering" and "Special Diet, Transportation and Attendance" was just and adequate.

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

It relied on the minimum wage standards for skilled workers prevalent at the time of the accident to determine income in the absence of documentary proof.

Regarding future prospects, the court followed the ratios laid down in National Insurance Company Ltd. v. Pranay Sethi and Ors. (2017) 16 SCC 680 and Sidran v. The Divisional Manager, United India Insurance Company Ltd. And Anr. (2023) 3 SCC 439, which mandate adding a specific percentage (25% for age 46) to the actual income for calculating future loss of earnings.

The Court found the Tribunal’s assessment of Rs. 6,500/- per month to be lower than the prevalent minimum wage of Rs. 8,655/- for skilled workers as of June 2019.

Applying the established precedent for a 46-year-old claimant, the Court added 25% for future prospects, bringing the monthly income to Rs. 10,818/-.

With an undisputed 30% functional disability and a multiplier of 13, the future loss was recalculated to Rs. 5,06,282/-.

Observing the severity of the multiple fractures and the duration of treatment, the Court determined that the Tribunal's awards for "Pain, Shock and Suffering" and "Special Diet" were meager and required upward revision to Rs. 50,000/- each to meet the standard of "just compensation".

The claimant is entitled to an additional amount of Rs. 1,79,652/- with interest at 7.5% per annum from the date of the petition until realization.

The Insurance Company (Respondent No. 5) was directed to deposit the additional sum within six weeks.