Gujarat High Court
Transport, Maritime, and Aviation LawInsurance Law

Minimum wages must be considered for reassessing notional income in motor accident claims absent specific evidence.

Minaben Karsanbhai Patel v. Karsanbhai Maganbhai Patel & Ors. [R/First Appeal No. 2066 of 2025]

Gujarat High CourtJUDGMENT: no citation2 MIN READSOURCE JUDGMENT
Minimum wages must be considered for reassessing notional income in motor accident claims absent specific evidence.. Minaben Karsanbhai Patel v. Karsanbhai Maganbhai Patel & Ors. [R/First Appeal No. 2066 of 2025]. Gujarat High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On June 11, 2016, the appellant-claimant sustained grievous injuries and fractures when a Chevrolet Spark car driven by her husband in a rash and negligent manner collided with a rickshaw.

Source reference: para. 3

The appellant filed MAC Petition No. 444 of 2017 before the Motor Accident Claims Tribunal (Aux), Kheda at Nadiad.

Source reference: para. 1, 3, 8

The Tribunal partly allowed the claim, awarding ₹4,00,000/- against a claim of ₹7,00,000/-, assessing the appellant’s notional income at ₹5,000/- per month and disability at 25%.

Source reference: para. 1, 3, 8

Dissatisfied with the quantum of compensation, the claimant preferred this appeal under Section 173 of the Motor Vehicles Act, 1988.

Source reference: para. 1
02

Issues

1. Whether the Tribunal erred in assessing the appellant’s income at ₹5,000/- per month instead of considering the prevailing minimum wages and the claimant's alleged profession.

Source reference: para. 4, 7

2. Whether the appellant is entitled to enhancement of compensation under the heads of future loss of income and actual loss of income.

Source reference: para. 9, 12
03

Law Applied

The Court applied Section 173 of the Motor Vehicles Act, 1988 regarding appeals.

Source reference: para. 1

It relied on the precedent set in *Govind Yadav v. National Insurance Co. Ltd.* (2012), which mandates that in the absence of documentary proof of income, the Tribunal must consider prevalent minimum wages.

Source reference: para. 7

For the computation of future loss of income, the Court applied the multiplier system established in *Sarla Verma v. Delhi Transport Corporation* (2009).

Source reference: para. 9

Additionally, it considered the principles regarding disability assessment from *D. Sampath v. UII Com. Ltd.* (2011) and *Rudra v. Divisional Manager* (2011).

Source reference: para. 8
04

Reasoning

The High Court found that while the claimant failed to produce evidence of her ₹20,000/- monthly income, the Tribunal’s assessment of ₹5,000/- was lower than the government-approved minimum wage of ₹7,700/- prevailing in June 2016.

Source reference: para. 7, 9

The Court upheld the 25% permanent partial disability assessment and the multiplier of 7 (based on the claimant's age of 61).

Source reference: para. 8-9

Applying the corrected income of ₹7,700/-, the Court recalculated the future loss of income as ₹1,61,700 (7,700 x 12 x 7 x 25%) and the actual loss of income for three months as ₹23,100.

Source reference: para. 9, 12, 13

The Court determined that no future prospective income additions were required due to the claimant’s age.

Source reference: para. 9

Other conventional heads like pain and medical expenses were found to be just and proper.

Source reference: para. 11
05

Holding

The High Court partly allowed the appeal, modifying the judgment dated 11.03.2025.

It enhanced the total compensation from ₹4,00,000/- to ₹4,64,800/-, awarding an additional amount of ₹64,800/- with proportionate costs and interest.

Source reference: para. 12-13

The Court directed respondent No. 3 (Insurance Company) to deposit the additional amount within four weeks and ordered the Tribunal to disburse the funds via RTGS/NEFT after deducting deficit court fees.

Source reference: para. 13-14
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

Minaben Karsanbhai Patel v. Karsanbhai Maganbhai Patel & Ors. [R/First Appeal No. 2066 of 2025]

Gujarat High Court · no citation

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