Motor accident compensation for agricultural labor must be based on prevalent minimum wages in the absence of income proof.

On October 7, 2024, the deceased, Sejalben (aged 19), was traveling in a luxury bus driven by Respondent No. 1. The vehicle turned turtle due to rash and negligent driving, resulting in her death

The deceased was involved in agriculture and animal husbandry

The Motor Accident Claims Tribunal (Main), Kheda at Nadiad, in MACP No. 147/2025, awarded the appellants Rs. 13,30,600/- with 7.5% interest, treating the deceased's monthly income as Rs. 8,000/-

The appellants challenged this award seeking enhancement based on minimum wages and proper conventional heads

1. Whether the Tribunal erred in assessing the notional income of the deceased at Rs. 8,000/- per month in the absence of cogent evidence, and whether it should be aligned with the prevailing minimum wages

2. Whether the compensation awarded under conventional heads (loss of consortium, loss of estate, and funeral expenses) required enhancement as per established legal precedents

The court applied the principles of determining "just compensation" under the Motor Vehicles Act, 1988.

It relied on Sarla Verma v. Delhi Transport Corporation [AIR (2009) 6 SC 3104] for the application of the multiplier (18 for age group 15-20) and deduction for personal expenses (1/2 for a bachelor)

It followed National Insurance Company Ltd. v. Pranay Sethi [2017 (16) SCC 680] regarding a 40% addition for future prospects for those under 40 years and the standardization of conventional heads

The court also applied Magma General Insurance Co. Ltd. v. Nanu Ram [2018 (18) SCC 130] regarding the grant of parental consortium

The High Court found that while the deceased's exact income was not proved, the Tribunal's assessment of Rs. 8,000/- was below the minimum wage for a skilled worker (Rs. 13,234/-) at the time of the accident in 2024

The Court reassessed the dependency by adopting the minimum wage, adding 40% for future prospects (totaling Rs. 18,528/-), and deducting 50% for personal expenses of the bachelor, resulting in a monthly loss of Rs. 9,264/-

Applying a multiplier of 18, the future loss of dependency was calculated at Rs. 20,01,024/-

furthermore, the Court increased the conventional heads (consortium, estate, and funeral) to reflect current indexed rates totaling Rs. 1,33,100/-

The total compensation was enhanced from Rs. 13,30,600/- to Rs. 21,34,124/-

The Court ordered Respondent No. 3 (Insurance Company) to deposit the additional amount of Rs. 8,03,524/- with 7.5% interest per annum within six weeks

The Tribunal was directed to disburse the entire enhanced amount to the claimants after verifying court fees