Notional income of engineering student must exceed minimum wages for skilled workers in motor accident claims.

The appellants (parents of the deceased) challenged the judgment and award dated 07.07.2023 passed by the MACP Tribunal, Ahmedabad in MACP No. 419/2010.

The deceased, a 20-year-old student in the second year of an Engineering degree, died in a motor accident on 23.06.2010.

The Tribunal originally awarded ₹4,47,500/-, calculating income at ₹3,500/- per month and deducting 20% for the deceased's self-negligence.

The appellants sought enhancement of quantum on the grounds that the assessed income was lower than minimum wages and that conventional heads (funeral expenses, loss of estate, and consortium) were inadequately compensated.

Whether the Tribunal erred in assessing the notional income of an Engineering student at ₹3,500/- per month, and what should be the just compensation?

Whether the claimants are entitled to enhanced compensation under conventional heads and loss of consortium?

The Court applied the Motor Vehicles Act principles for "just compensation."

It relied on National Insurance Company Ltd. v. Pranay Sethi (2017) regarding the addition of 40% for future prospects for a deceased below 40 years and the standardization of conventional heads (funeral expenses and loss of estate) with periodic increments

It further applied Magma General Insurance Co. Ltd. v. Nanu Ram @ Chuhru Ram (2018), which established the right of parents to receive compensation for "filial consortium."

For income assessment, the Court referenced the Minimum Wages Schedule for skilled workers but noted that professional degree students should be prioritized higher than skilled laborers.

The Court observed that at the time of the accident (2010), minimum wages for skilled workers were ₹4,210/-, making the Tribunal’s assessment of ₹3,500/- for an Electronic and Mechanical Engineering student inappropriately low.

Consequently, the Court reassessed the notional income at ₹7,000/- per month.

Following Pranay Sethi, the Court added 40% for future prospects (totaling ₹9,800/-) and deducted 1/2 for personal expenses as the deceased was a bachelor, resulting in a monthly dependency of ₹4,900/-.

Using a multiplier of 18, the dependency loss was calculated at ₹10,58,400/-.

The Court further updated conventional heads to ₹18,150/- each and awarded ₹96,800/- for loss of consortium to the two parents.

Finally, the Court maintained the 20% deduction for contributory negligence as it was not challenged.

After deducting 20% for self-negligence (₹2,38,300/-), the net entitlement was fixed at ₹9,53,200/-.

As the Tribunal had previously awarded ₹4,47,500/-, the respondent Insurance Company was directed to deposit the additional amount of ₹5,05,700/- with 9% interest per annum within four weeks.

The Court ordered the disbursement of the entire amount to the claimants.