Delhi High Court

Minimum wages of skilled workers apply where oral testimony of employment is consistent but lacks documentation.

Savita & Ors. vs National Insurance Company Ltd

Delhi High CourtJUDGMENT: April 30, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellants (legal representatives of the deceased, Ashok Kumar) sought enhancement of a compensation award of ₹16,76,900/- granted by the MACT

Source reference: p. 1

On January 18, 2018, the deceased was killed in a motor accident involving an offending motorcycle on the Yamuna Expressway

Source reference: p. 1-2

The deceased was 37 years old and survived by five dependents

Source reference: p. 2

Before the Tribunal, the appellants claimed the deceased earned ₹15,000/- per month as a helper/supervisor at M/s Kanta Enterprises, supported by a wage certificate (Ex.PW-1/2) and the testimony of the proprietor (PW-3)

Source reference: p. 2-3

However, the Tribunal rejected this evidence due to a lack of documentary corroboration (ITRs, wage registers) and assessed income based on the minimum wages of an unskilled worker in Uttar Pradesh (₹7,400/-)

Source reference: p. 2-3, 23
02

Issues

1. Whether the Tribunal erred in adopting the minimum wages of an unskilled worker as the benchmark income in the absence of absolute documentary proof of salary

Source reference: p. 3 / para. 9

2. Whether the oral testimony of an employer and the personal circumstances of the deceased justify an upward revision of the benchmark income through "intelligent guesswork"

Source reference: p. 19 / para. 30(C)
03

Law Applied

The court applied Section 165 and 169 of the Motor Vehicles Act, 1988, noting that claim petitions follow summary procedures and the standard of proof is the preponderance of probabilities rather than strict rules of evidence

Source reference: p. 9

It relied on Chandra v. Mukesh Kumar Yadav (2022), which established that the inability to produce a salary certificate does not justify adopting the lowest tier of minimum wages; instead, courts must use "guesswork" not detached from reality

Source reference: p. 3, 7

Kirti v. Oriental Insurance Co. Ltd. (2021) emphasized preserving the family's standard of living

Source reference: p. 5

Rajwati @ Rajjo v. United India Insurance (2022) affirmed that oral testimony of family and co-workers can substantiate income even if passbooks or formal records are missing

Source reference: p. 8-9
04

Reasoning

The Court analyzed the testimony of PW-3 (the employer), noting that while he failed to produce wage registers or ITRs during cross-examination, his statement that wages were paid in cash is typical for the informal sector

Source reference: p. 21-23

The Court formulated several "guideposts," determining that in the informal sector, the lack of an appointment letter should not prejudice the claimant, and courts should consider the nature of work and the deceased's lifestyle (e.g., commuting by motorcycle)

Source reference: p. 18-20

While the Court found PW-3’s testimony insufficient to prove the full ₹15,000/- claim, it held that the deceased was clearly engaged in a "private job" as evidenced by the FIR and PW-1's testimony

Source reference: p. 23-24

Consequently, the Court found the Tribunal’s classification of the deceased as "unskilled" to be too low and revised the status to "skilled worker" based on the nature of his employment and circumstances

Source reference: p. 24
05

Holding

The Court answered the issues in the affirmative, holding that the benchmark income should be revised from the minimum wage of an unskilled worker to that of a skilled worker in Uttar Pradesh, calculated at ₹9,381/- per month

The Court enhanced the total compensation from ₹16,76,900/- to ₹20,51,309/-, representing an increase of ₹3,74,409/-. The respondent Insurance Company was directed to deposit the enhanced amount with 7.5% interest per annum within four weeks

Source reference: p. 24, 25
Delhi High Court

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Savita & Ors.vsNational Insurance Company Ltd

Delhi High Court · April 30, 2026

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